The Research On Risk Management Of The New Gem Structured Deposit Product Of Industrial Bank

In recent years,the growth of financial business has been huge and vigorous in major domestic commercial banks with a variety of financial products emerge in endlessly so that incomes from financial business have become an indispensable part for commercial banks.In the same while,peoples' awareness of financial management is strenthening persistently and demand for financial products increasing vastly for the sake of individual wealth's preservation and appreciation.Under the background of the above market supply and demand state,development prospect of financial products have been shown favourably and potentially for commercial banks.However,the risks of financial business have also been increasing constantly under the huge demand.Therefore,it has been critically and urgently for commercial banks to analyse problems arisen in the sale and operation of financial products and propose methods to control and avoid their risks.This paper takes the new gem structured deposits,one of the Industrial Bank financial products,as study object.On the basis of a comprehensive review of previous research literature,this paper acquires the evidence data of the new gem through case analysis,questionaire survey and other methods and then conducts an integrated analysis of its risks' factor identification,measurement and management.Firstly,the paper introduces risk management conditions of the Industrial Bank's financial business and thus summarizes prominent problems therein.Secondly,this paper indentifies risk factors for the new gem and uses the VaR model to measure its risks.Finally,the paper proposes a set of countermeasures for risk management of the Industrial Bank new gem so as to maintain its risks within the acceptable and reasonable range.Based on conclusion and adoption of domestic and foreign research achievements on financial products,this paper have completed above work and provided a suite of quantification scheme for the risk management of Industrial Bank new gem,therefore establishing solid theoretical support for its long-term development.Meanwhile,this paper has also offered an important method reference for the risk management of other financial business by the Industrial Bank.