Research On Risk Management Of Structural Financial Products Of Chinese Commercial Bank

In recent years,the investment demand of our residents has become increasingly prosperous.And bank financial management has also become an important channel for residents' investment.Among them,structured financial products are gaining more and more attention,and the market scale of structured financial products is increasing day by day.Structured products are the combination of fixed income and derivatives.In this way,funds can be linked to interest rates,exchange rates,stocks,commodities,etc.They are characterized by complex design,diverse forms,and high returns.If you continue to invest in derivatives using the proceeds of low-risk assets,the leverage can make high returns become a reality.However,in addition to the ordinary buying groups,some bank risk control departments also regard structured financial products as high-yield,low-risk deposit instruments.Just like this,banks have exposed many imperfections in the risk management of structured financial management.Investors pay more attention to the income situation,and often pay less attention to product risks.At the same time,China's regulatory authorities also lack targeted laws and regulations on structured financial management.Therefore,since the development of structured financial products,the issue of risk management will become an area where is worthy of attention,and there is little research on this area in the existing literature.In this context,this paper considers the risk management of structured financial products.The research has certain necessity and significance.This article tries to put forward reasonable countermeasures and suggestions to our country's commercial banks to prevent the market risk of structured financial products.From the perspective of China's commercial banks,this article does the research with the combination of theoretical analysis and case analysis.First of all,the article analyzes the definition,classification,pricing design and the development status of the structured wealth management products in order to gain a better understanding of the structured wealth management products.Next,we classify the market risk faced by the structured wealth management products,and we focus on the structured product risk identification,risk measurement and risk management conducted a more in-depth analysis,such as riskidentification methods,processes,VaR and other risk measurement methods to do a systematic introduction,and how to conduct risk management and control Then,based on the relevant cases,we use the VaR method to do the empirical test.Finally,we give some suggestions and advice to investors,commercial banks and government regulators.From the perspectives of investors,investors should invest the products rationally to enhance the awareness of risk methods.From the perspectives of commercial banks,they should also improve the risk management system and strengthen the system of information disclosure and improve the product design mechanism;From the perspectives of government regulators,they should promote the further development and improvement of China's derivatives market.We hope this article can provide feasible advice for the market risk management of structured wealth management products in China's commercial banks.