A Research In Pre-trade Risk Control In Financial Market Business For Commercial Banks In China

Recently, as the financial market business has becoming more and moreimportant comparing with the traditional loan business, it is necessary thatbanks should do more research in related risk control fields. There are many riskevents, also called black swan events, have brought serious damage and loss tosome banks, and there is a lot to be done in developing risk control instruments.The improvement of risk control instruments is a premise to make sure thatbanks can move along better. This thesis gives a solution of improving riskcontrol system in financial market business, throughout the analysis of financialrisk events, which is very useful for commercial banks.There are five parts in this thesis:The first part gives general introductions of the importance in strengthenrisk control for commercial banks in China, makes an analysis in risk eventshappened these years, takes out the idea of pre-trade risk control.The second part focus on the products of financial market business, and thedifferent requirements in risk control. There are three major risks, operationalrisk, credit risk and market risk, and we can use twelve indicators to monitorthese risks.The third part is the present condition of risk management in financialmarket business for commercial banks in China. Takes bond investment andforeign exchange as example, makes further research in pre-trade risk control.The fourth part analyzed the methods of risk control, and gives details inhow to use the twelve indicators to monitor risks.The fifth part gives out conclusions, we can use pre-trade risk controlsystem to fight against illegal trades, helps to improve the management ofcommercial banks in China, make sure that the financial market can functionsound and health.