An Empirical Analysis On The Operational Risk Of China 's Securities Companies Based On Factor Model

As other financial institutions, there are mainly three kinds of risk in securities firms:market risk, credit risk and operational risk. While market risk and credit risk have been the key points for studying, operational risk, though its concept has been introduced long time ago, has not attracted close attention until recently. It is indicated by many losing event of operational risk in securities firms in and abroad that effective methods and measures must be taken to improve operation risk management in securities firms.The Article is composed of five parts. The first part is the introduction; the second part is method of quantitative analysis; the third part is the main content of the article which lists a series of examples, and talks the failure analysis summary of its surface and deep. And the case library is established; the fourth part is the core content, which the software libraries in the sample SPSS factor analysis, from the surface of the reasons for brokerage firms failed to find out the core of the reasons; the fifth part is the conclusion.In this article there are39security companies taking-over or cancelled security operation license or bankrupted because of out of line operation or illegal operation. Based on the stylebook of39security companies, this article will take factor model and find risk’s cause factor from the fail security companies in the eye of demonstration to summarize experience and to take lessons from the history of decade development of security companies, avoiding walking on the same wrong way in aftertime operation.