Research Of Risk Management Of Hunan Jinzheng Investment Advisory Company

Investment advisory company has nearly20years of development history in China, There are many problems in these companies, such as:small-scale, homogeneous serious business, poor profitability, nonstandard information dissemination and other issues.so the risk-consulting capacity of the investment company is extremely poor, therefore how to strengthen the investment advisory firm risk management and reduce business risk of investment advisory companies has become an urgent problem. Experienced by the subprime mortgage crisis triggered by the global financial crises, we are deeply aware of:enhanced risk management is a wise choice for the investment advisory companies to improve core competitiveness and it is good to maintain their own health survival and development.The paper take Hunan Jinzheng investment advisory company for example, first of all, from the traditional risk management, modern risk management, risk management phase of a comprehensive set of risk management described the evolution of enterprise risk management theories, and then analysis agency theory, strategic management theory, stakeholder theory. The paper introduced the elements of COSO risk management framework, and analysis of its revelation of enterprises in China to strengthen risk management.In the course of Jinzheng’s business, Jinzheng is mainly facing market risk, operational risk and reputation risk, but because of investment advisory Companies ranging from general business between financial institutions and the special organization, Jinzheng subject to market risk, and easily generate operational risk, reputation risk is passed quickly. According to the Operating conditions of Jinzheng, the fundamental reason for Jinzheng producing argues are that there is no specific risk management institutions, inherent vulnerability of investment advisory company and excessive volatility in prices of financial asset.According current situation of the risk management of Jinzheng investment advisory company, this paper believes that in order to establish a sound risk management mechanisms Jinzheng investment advisory company should set up a special risk management organization that is established under the Board Risk Management Committee fristly. Secondly, Jinzheng Investment advisory company should develop a comprehensive risk management institution. At the same time Jinzheng Investment advisory company should straighten out the relationship between risk management and the environment, that is Jinzheng Investment advisory company should deal with the relationship between risk management and development objectives, financial innovation and standardized operation. Finally, Jinzheng investment advisory company should strengthen the investment advisory division the professional ethics division of investment consultant.