MP Fund Company Risk Management Method And Optimization Strategies

With the rapid development of international financial markets,fund companies'investment strategies and assets are more and more diverse and complex;the high returns of fund investing are ofen accompanied by high risk.Therefore,the fund company 's risk management is an important issue of concern in theory and practice.This paper first reviews the fund company risk management theory and literature,and introduces the market risk and operational risk management approach;Then,theory and practice,using the case study method,taking the MP fund company as an example,it discusses this company's risk management method and optimization strategies.Including,first,combining with specific investment business,it analyzes that the MP fund company faces market risk and operational risk.Second,combining quantitative and qualitative analysis methods,it describes the MP fund company's market risk management based on the VaR method and risk limits management methods,and the operational risk management based on information technology systems and operational risk limits management related to trading operations.Third,it evaluates the company's market risk management and operational risk management method and provides appropriate optimization strategies.The results of this sudy help investors and regulators to understand major risks for the fund company and its risk management situation currently,to provide suggestions and support to improve the fund company's risk management level.