The Research Of Insurance Financial Holding Group's Risk Management

As mixed operation in financing industry sprang up, to guard against systemic risks of operating a single business, and to achieve a new business growing point, and break the bottleneck of business development, our various insurance financial institutions are actively trying to adopt a strategy of divers ification and expansion of the financial sector license. Due to restrictions of separate financial supervis ion system, mixed operations have not yet released, then financ ial holding group structure become a form of legal organization from period of separated operation to mixed operations.Due to economies of scale and economies of scope, the insurance financ ial holding group reflects obvious synergies. At the same time, because of the conflict of interest issues and internal risk of infection, the insurance financ ial holding group faces more risks of complications than a single financ ial institution in terms of insurance, compared with the general type of financ ial businesses. With the objective existence of divers ification, insurance financial holding groups not only need to protect their own risk management and control, but also find coordination with the risks of subsidiaries under control. Financial holding groups not only need to control the general risk of interest rate risk, credit risk, market risk, liquidity risk and exchange rate risk faced by all enterprises, but also pay attention to prevent unique risks, such as the risk of conflicts of interest, insider trading risks, organizational structure risks, which are caused by the complexity of the group's own management structure.The complexity of the financ ial holding group risk insurance determines the importance of risk management. Insurance financial holding group's risk management system inc ludes the overall level of risk management and operational level of risk management. The overall level of risk management is the first line of defense. A good governance structure of the company and a complete internal control system are the main contents of the overall level. Operational level of risk management is what we usually recognize risk managements narrowly, namely through a process of risk identification, risk assessment and risk control. Operational level of risk management includes the general risks control and special risk control.Ping An Insurance Group, as our country's leading financ ial holding group, can provide an excellent reference to financ ial companies which are trying to build a structure of financ ial holding group, and to achieve a comprehensive operation of financial institutions. Through the quantitative analys is on the comprehensive management efficiency and risk status of Ping An Group, it shows that under the structure of financ ial holding group, Ping An Group has a good operating performance and leading risk management level. Finally, with the introduction of Ping An Group's acquisition of Fortis, we can summary some conclusions of risk management in an insurance financ ial holding group.In theory, we can construct a complete risk control system of insurance financ ial holding group. In practice, through Ping An Group's case, we can deeply understand the characteristics of such organizations in the risk management and control system.Due to my lacking for practical experience on risk management, difficulty in obtaining public information and data of Ping An Group, and my limited personal knowledge, I did not find a suitable model to describe absorption of risks between different business unions, and reflect in the risk identification, measurement and control in the company.