Compliance Risk Management Study Of Gansu Province Insurance Company

With the fast development of the insurance industry, fierce competition and complex market environment, the insurance company will encounter various risks.Compliance risk is a pre-performance which is serious for insurance companies. In recent years, compliance risk management is the pre-management and preventive management of risk rising in insurance industry. It is the foundation of comprehensive risk management in insurance companies, and we should also focus in the theory and practice field. Since the financial crisis in 2008, the requirement of risk control and compliance management in global financial industry has been increasing, and compliance management has become the global financial management and the inevitable trend of value orientation. Therefore,compliance risk management of the insurance company under the current complicated market environment is particularly important.The compliance risk management is closely related with corporate governance and internal control. From the company’s internal control perspective,this article wil base on compliance risk management concepts, the origin, and the development of compliance risk management in Gansu Province, and the analysis of the insurance company’s status in Gansu Province, we can conclude the necessity to strengthen the compliance risk management. Risk management situation in recent years, the main reasons and problems and some incidents can be drawn from integrated governance of various types of insurance regulatory violation cases, and it is compliance risks that an insurance company faced ininternal governance and internal control process. Therefore, we summarize current issues: first, the governors of insurance company in Gansu Province lack adequate compliance risk management cognition, so some irregularities occurred; second,the department function of compliance risk management is not enough scientific and rational set; third, each irregular behaviors concentratedly occur in different periods; fourth, companies lack compliance risk management techniques. Used theoretical research and case study, we analyze double-sided effect of compliance risk management for the company’s management: First, the beneficial effects include enhancing the overall strength, facing challenges, and promoting compliance; second is adverse effects including the sound operation, the company’s reputation, and the operating efficiency. Furthermore we discuss the Gansu insurance company in compliance risk management program and its implementation. In the end, we conclude four areas of improvements: First, to build deep-rooted culture of compliance; the second is to establish an independent compliance risk management system; the third is to improve compliance and compliance incentive accountability; the fourth is to optimize the monitor system of external supervision.