The Risk Research On Personal Financial Services Of Bank Of China Bank DS

Recent years, with the increase of residents’ disposable income，saving is no longer theonly means of financial management, while inflation remains high even inspire people todemand for financial products. At meanwhile, the rapid development of financial marketsand financial products constantly updated also makes people’s financial awareness deepened.Personal financial services in DS branch of Bank of China provide customers a range oftailor-made personal financial services and financial planning according to different levels ofcustomers’ assets value demand, in the customer’s life cycle, meeting the customers’personal assets the requirement of the security, liquidity and profitability. Financial productsare the mainstay of wealth management business, which can be divided into bank financialproducts, fund products, insurance and financial products, brokerage of financial productsand trust financial products according to the issuer. The risk of personal financial business inDS branch of Bank of China is divided into liability risk and reputational risk from thebank’s point of view according business characteristics.Liability risk come from personal financial services product sales and contractingprocesses, which include: information transfer risk, customer suitability risk, operational riskof bank financial personnel. Reputation risk is faced on the situation of the designation offinancial products and operation of financial capital. Although the bank has clearly stated inthe contract that investor bear the resulting risk and the bank is exemption, in the presentcase once the big losses happen in financial products will seriously affect the bank’sreputation, so the banks also assume the risk to a large extent. According to the type ofbusiness, reputation risk is divided into the trust and financial cooperation risk, financialfunds investing in local government financing platform risk, financial funds for equityinvestment risk, financial funds investing real estate risk and banking consignment businessrisk.Financial Services of DS branch of Bank of China is the one of the more concentratedrisk point in the wealth management business. The related risks are not only directly relatedto the interests of customers and benefit of bank, but also attract the attention by theregulatory authorities and the media. With the rapid development of financial products inrecent years, the DS branch of Bank of China should be based on development strategy, riskmanagement requirements and operational characteristics,establish and improve wealthmanagement business risk management system and internal control system, implement of internal monitoring and independent auditing measures, carry out personal financial businessprudently and diligently.