The Research On Risk Management Of YH Securities Company's Proprietary Trading

In accordance with the requirements of the CPC's 19 th National Congress,in the next three years,it is necessary to focus on the three major challenges of preventing and resolving major risks,accurately eliminating poverty,and preventing and controlling pollution.Preventing and resolving major risks are placed at the top of the three major challenges,and the focus of preventing and resolving major risks is to prevent and control financial risks.The proprietary-trading business of Securities Company started late in China,but developed very rapidly and have now become the largest source of income for Securities company.Although China YH Securities Co.,Ltd.(hereinafter referred to as “YH Securities”)has a reasonable financial company management system,under the background of rapid changes in the financial environment and the high quality requirements of customers,the company's internal control system and the establishment and improvement of risk control systems are also more stringent.The risk management of Securities Company has always been a research hot spot in the theoretical community.From the range of the risk management research of Securities Company,most scholars at home and abroad conduct research on the overall level of the company,and rarely conduct independent research on the risk management of key businesses such as proprietary-trading business.Therefore,it is of great significance to study how YH Securities can improve its own risk management capabilities for proprietary-trading business.The paper uses life cycle theory for the first time to analyze the risk management of Securities Company's proprietary-trading business.This paper first applies the risk management theory to the research of risk management in YH securities proprietary-trading business,and analyzes the risk management status of YH securities proprietary-trading business.Then analyze the YH securities proprietary-trading business in different life cycle risks and found that there are 3 major problems in the risk management of YH securities company's proprietary-trading business:(1)The YH securities investment research period's proprietary business scale measurement and special stress testing issues,the structure and scale of investment in securities companies are not scientific enough,and may lead to very serious risks,In addition,the stress test is conducted from the company as a whole,cannot highlight the impact of risk factors on the proprietary-trading business with the largest source of income;(2)The decision-making system of the investment decision-making period and the issue of stock pool construction standards,there is no perfect stock pool construction standard,and the three-level decision-making system does not separate the decision-making power and the executive power;(3)There is a lack of information disclosure process during the implementation period.Finally,the risk management plan for different life cycle of YH securities proprietary-trading business and the safeguard measures for its implementation are designed.Based on a comprehensive and systematic study of the risk management of the Securities Company's proprietary-trading business,this paper analyzes in depth the development of YH Securities' proprietary-trading business and its risk management issues in different life cycles,and proposes specific ideas for the management plan design.It aims to provide a new perspective for domestic Securities Company to solve the problem of proprietary-trading business risks.