Brokerage Business Risk Management Research Of Founder Securities Company

Along with our country’s financial market increasingly open and move forward,the securities industry also will prosper. Nowadays, the main business of securitiesmarket in China is the stock brokerage；the stock brokerage risk management wasincreasingly drawn attention by all parts of the securities market. As the most essentialbusiness of the Founder Securities, and the profit of its brokerage business hold greatproportion and more than50%in recent years. The failure or success of brokeragebusiness play great role in company’s overall development. Thus, in order to make thecompany develop healthy and steady, this paper combed problems which were exist insecurities brokerage business involving risk management. Then it took a in-depthresearch based on the problems which were founded.This paper made the basic concept definition firstly, at the same time it describeda simple analysis of the risk management theory on the basis of the securitiesbrokerage business from the emergence and development of its domestic developmentenvironment. And then focus on analysis of the course of business development andoperational status of the Founder securities brokerage, Founder securities brokeragebusiness risk performance and the company’s brokerage business risk management.Graph method were used to list the species of the risk in founder securities brokeragebusiness, at the same time, using comparative method to reflect deficiencies in thesecurities brokerage business risk management of Founder securities company. Thus itcombed the risk management problems in securities brokerage business of Foundersecurities company: First, the expansion of sales stores are too fast, so it hard tocontrol brokerage business risk; Second, the internal control is not perfect, and it hasnot been established effective risk management organization structure; Third, it is lackof foreign exchange and external supervision; Fourth, the workers of Foundersecurities company are lack of risk control consciousness, and easy to ignore riskcontrol.According to the problems found in securities brokerage business riskmanagement of Founder securities company, this paper proposed4advices tosecurities brokerage business risk management of Founder securities company。Thefirst is to create favorable and effective operation internal environment on riskmanagement and strengthen the internal control strength; The second is to control expansion speed of sales store and strengthen internal business exchanges; The thirdis to strengthen the communication, the introduction of external supervision; The lastis to foster the good faith for the compliance priority company culture and improvestaff risk control consciousness and so on.This paper just solved the problem of Founder securities companies aboutsecurities brokerage business risks faced by the control and management measures. Itdoesn’t discern on a macro look at this issue in terms of economic, financial and other,so this problem remains to be further in-depth study.