Investment Bank Risk Management And Countermeasure

The industry of Investment Bank has entered into its initial phase with the development of securities and adjustment of economical structure for enterprises. Investment Bank is an industry of high risk, due to the short history, lacking of comprehensive law system to regulate this industry in our country, it has been both a theoretical and practical problem to research how to enhance risk management of Investment Bank while poor risk awareness is cast to the "surf top" industry.This paper introduce the main transactions and features as well as the risk types of the industry while at the same time elaborately analysis the organizations involve with Investment Bank at home————the specific forms of risk for security investors. With elaborately analysis of major problems existing in risk management for Investment Bank and further elaboration of some typical cases indicating the failure due to ignorance of risk management in the world, some basic protective principles and specific measures which considered to be workable and significant to instruction of risk management in our country have been rendered in this paper, plus analysis of bankruptcy Yamaichi Securities in .Japan,Peregine Investments Holdings Limited in Hong Kong and Barings Brothers Ltd in England with a view of the current situation at home.