Case Study On Risk Management Of Investment Banking Business In X Securities Company

In the context of globalization,Chinese government has increased the intensity of reforming to encourage Securities industries and intensify its corresponding supervision,further accelerating the development of capital market.However,the risk management awareness and quality of these developing Securities companies still cannot keep up with the current market demands.The consequences caused by neglecting risk management can be seen from the bankruptcy of China Securities and China Southern Securities.It is known to all that investment banking business plays the key role in Securities companies,which is also a high-risk business.Therefore,the study on investment banking business is of great significance in promoting the development of Chinese capital market.In this thesis,the investment banking business of X Securities Company has been chosen as the sample to analyze its risk management.With the methods of case study and eXperts consultation,the study starts from the case that X Securities Company has frequently been placed on file for investigation and prosecution by CSRC in recent years,analyzes its causes and offers corresponding solutions.The thesis consists of six parts and the content of each part are as follows.Part One briefly introduces the background and necessity of conducting the research,lists some related documents at home and abroad as well as the research methods.Parts Two illuminates related concepts and theories including the risk management theory,internal control theory,etc.Some violation cases on investment banking business conducted by X Securities Company are listed in Part Three.In Part Four,it analyzes the current situation of risk management on investment banking business in X Securities Company and the problemsexisted in it.In order to strengthen its risk management,Part Five provides some strategies and suggestions.At last,the thesis ends up with the conclusion and some expectations.Based on the case study,the thesis discloses the problems exist in the investment banking business of X Securities Company,such as excessive pursuit for profits,weak awareness in risk management,loose regulation on contractor,inefficient risk control department,etc,For these problems,the thesis puts forward corresponding solutions involving raising the awareness of risk management,perfecting risk management system,completing relevant procedures as well as strengthening related regulations.This way,examples can be set up for helping other Securities companies to further develop their investment banking business in a sound way.