Research On Risk Management Of Wealth Management In Commercial Banks

With the rapid development of wealth management business,more and more financial institutions have begun to take part in it.At present,commercial banks have become the dominant and other financial institutions have developed rapidly.But innovation in wealth management products and services carries enormous risks.As the leading financial institution of wealth management business,commercial banks have urgent demand and far-reaching significance in the study of risk management of wealth management business.This article,from the angle of commercial bank,studies the internal risk management content of its wealth management business from the micro angle of view.Combined with the actual case of CITIC Bank's wealth management business,this paper analyzes the macro,industry and individual business risks of the wealth management business of commercial banks through four aspects of risk identification,evaluation,control and monitoring.The risk of specific business is analyzed more,and the Value at Risk Theory is applied to risk management of individual business,which is proved to be feasible and effective.Specifically,this paper studies the risk management of wealth management business of commercial banks through five steps.The first step,this paper reviewed the relevant literature on wealth management business and risk management,optimization of the wealth management business of commercial bank risk management theory from risk identification,assessment,control and monitoring of the four links,enriches the theory of risk management and wealth management business of commercial banks.The second step,from the Definition of Wealth Management Business,Customer Relationship Management Theory,Life Cycle Theory,the Definition of Risk Management,Investment Portfolio Theory and Value at Risk Theory six aspects introduces theoretical basis of the application of risk management and wealth management business of commercial banks.The third step,this paper expounds the present situation of domestic commercial bank wealth management business and risk management.Through the status quo of American's,Britain's and Japan's commercial banks and their comparison,analysis what is worth learning.This paper also identifies and manages the macro and industrial risks of the domestic commercial banks' wealth management business.The fourth step,this article elaborates the commercial bank wealth management business flow and the method,applied by the case of CITIC Bank XX branch,and identifies and manages the individual business risks of the domestic commercial banks' wealth management business.The fifth step,through the analysis of risk measurement methods and their limitations,risk calculation results and effectiveness,volatility forecasting results and accuracy of the three aspects,the Value at Risk Theory applied in the risk management of the wealth management business is proved to be an effective way.