Galaxy Securities Brokerage Business Risk Management Study

The securities market is always a high-risk market, securities companies how tosurvive in such an unpredictable market, has become a matter of concern. In a seriesof financial crises in recent years, and always some figure of securities companies.China’s stock market has experienced20years of ups and downs, SWS closure ofmerger and reorganization of China Southern Securities series of crises failure of riskmanagement is closely related to its brokerage business.Galaxy Securities was established more than a decade, the brokerage businessincome has been the main source of income of the company, the management systemof the company established a relatively perfect internal management and risk controlmechanisms, but even so, each year in the company’s brokerage business the risk ofthe case is still emerging, for violation exhibition industry, personnel management,and transaction management reasons, many times by the department issued aregulatory letter, exposing the risk management system there are imperfect,implementation of the system is not in place and many other issues. Faced with thegrim situation, the brokerage business risk management, improve risk management ofthe securities brokerage business, has become a very urgent task of Galaxy Securities.This paper first introduces the origin of the securities brokerage business and thedevelopment of China’s securities brokerage business process, and highlights China’ssecurities market brokerage business risk management process, the basic definition ofthe concept, while analysis of the current development of the theory of riskmanagement, with a focus on COSO Enterprise Risk Management-IntegratedFramework "and IOSCO Securities Company and its supervision of risk managementand control guidelines risk management framework model, and the problems thatexist in China’s securities brokerage business risk management are summarized.Second, to Galaxy Securities brokerage business model and risk management systemas the sample chart and comparative law, the Galaxy securities brokerage businessprocesses are described, and with the current operating results of the risk managementsystem, to tease out the Galaxy Securities risk management major The problem:1.detached from the risk management organizational structure and businessdevelopment; risk management tools and models lags behind the development ofbusiness innovation and marketing; lack of foreign exchange, the lack of externaloversight;4. Risk awareness, and the neglect of risk control. In response to these problems, this paper combines the expectations of thesecurities business development, proposed solutions:. Quantify the degree of risk, theestablishment of two branch level risk management framework; while increasing itsinternal controls, improve the risk management system construction and performanceappraisal, brokerage business risk management assessment objectives and forecastevaluation system; strengthen external relations, the introduction of externalsupervision; culture of honesty, the corporate culture of compliance management,follow-up training, regular lectures and other forms of publicity compliance to ourcorporate culture, while establishing Compliance Information contact system.As the article only Galaxy Securities brokerage business risk management as acase study to analyze, from the point of view of the overall risk management, therelationship between the securities brokerage business and other business, there aremany worthy of further study and discussion aspects.