A Research On Operational Risk Management Of Chinese Securities Companies

In recent years, securities companies operational risk events happenedoccasionally in Chinese securities market. These operational risk events brought aboutlarge losses, serious impact with wide scope, etc. Based on this, this paper chooses theoperational risk as research subject, trying to explore the securities companiesoperational risk management problems that exist in chinese securities market, fromthe view of factors that generate risk, such as internal process factor, personnel factor,system factor and the external event factor, and hope to provide some references forsecurities companies in China to manage operational risk.This paper selects the typical and timeliness Everbright Event as a study case.Firstlly, this paper introduces the background, course and consequences of theEverbright Event by collating related news reports and related literature, trying topresent the whole event as exactlly and completelly as possible. Secondly, this papersummarizes the operation risk point of the Everbright Event based on the definition ofoperational risk in Basel II,and analyzes the causes of the Everbright Event. Theconclusion involves: ETF arbitrage programming error which pertains to systemfactor is event trigger; Personnel factor is the main cause of expanding effect of theevent; Internal control defects which pertains to internal process factors is the rootcause of the event. External supervision system vulnerabilities is an important reasonfor the event. Finally, based on the enlightenment of the Everbright Event, this paperputs forward the countermeasures of reducing operational risk of securities companiesin China: strengthen the management of information system; improve the norm ofpersonnel management; strengthen the internal control; optimize the externalsupervision environment.