Country Company Investments In Securities To Prevent The Risk Management Study

Institutional investors are facing a series of risks in portfolio investment in the process of rapid development. Many cases of bankruptcy or heavy loss suffered by institutional investors indicate that internal management risks have threatened the survival and further development of institutional investors. However, the research into internal risk management of non-professional institutional investors has not received due attention.As a large state-owned foreign trade group company, GuoTong Corp. has undergone sustainable development in the portfolio investment sector. Yet at the same time, such activities have caused a heavy loss to the company as capital embezzlement, business misoperation, financing entrust management risks endangering fund safety. After serious investigation and research, it is clear that there exist a series of internal management problems in the portfolio investment sector of GuoTong Corp. and GuoTong Corp. has an urgent need and the capability of establishing a management risk aversion mechanism of its portfolio investment sector.Based on the internal control framework of COSO and the Enterprise Risk Management, considering the status quo and need of internal management of GuoTong Corp., the case study method is adopted to put forward a management risk aversion mechanism with internal control as its core and Enterprise Risk Management as its target, thus evading the risk management of portfolio investment.In addition, with regard to the content of risk management aversion mechanism, the basic framework of the mechanism of GuoTong Corp. should include a comprehensive corporate governance structure, target position and management concept, risk-centered performance evaluation mechanism, integrated internal control mechanism, effective external constraints, and risk countermeasures.