ICBC Financial Risk Of Management Research

With the development of financial industry and under the strong influence of globalization,commercial banks that are regarded as the information messenger and transaction channel in financial market are growing continuously,which leads to an increasingly fierce competition among those banks.And the paramount development goal that commercial banks are seeking for is how to balance making profits and maintaining robust operation.All commercial banks are aiming at gaining profits by e*panding,but the uncertainty,diffusibility and invisibility of risks impose danger on them.Thereby,in the situation that all banks are contending for attention,it is a necessary consideration that whether they can control their financial risks effectively or not.The nature of commercial banks is distinct since they are in charge of the flow and transaction of social capitals,so it is more significant and difficult to control their financial risks than other enterprises and there is a need to establish professionalized risk management systems to prevent risks systematically.The dissertation is going to conduct an in-depth analysis of financial risk management of commercial banks,and propose correspondent solutions and directions for improvement.Commercial banking industry in China is dominated by big four state-owned commercial banks with other commercial banks developing hand in hand.The dissertation is going to choose the largest commercial bank in China,which is Industrial and Commercial Banks of China(ICBC),as the e*ample to analyze and evaluate about its financial risks in detail.Firstly,after conducting financial risk e*amination by system evaluation,weak parts of ICBC are discovered and it is found that the financial risk of ICBC has e*panded and requires timely prevention measures.Then the financial risk is studied in detail on categories that are market risks,asset quality risks,credit risks and Internet finance risks to locate problems.In the end,correspondent risk management strategies are provided for each issue.The dissertation carries out the objective evaluation and in-depth study on current financial risks of ICBC and proposes effective strategies and actions for financial risk management system improvement based on the specific financial and management situations of ICBC,meanwhile taking China’s financial conte*t and economic polies into consideration and using advanced management concepts in developed countries for reference.The author believes that the prevention of financial risks ought to be included into daily operations of ICBC.In order to ensure the sustainable development and progress of ICBC,it is essential to establish an effective management system while strengthening professionalized management.