Research On Risk Management Of China's Financial Holding Companies

With the deepening of globalization,economic competition has become increasingly fierce at the end of the 20th century.All countries are seeking transformation in the competition,the most representative of which is the change of financial management system.By the end of 1990s,major developed countries in the world had transformed from separate operation to mixed operation.Faced with the major changes in the world economic situation,in order to enhance the ability of domestic financial institutions to resist shocks and to better develop the domestic economy,it is the right choice to integrate with the world.In 2002,the state approved the pilot mixed operation.The development experience of more than ten years shows that the financial holding company can greatly promote the development of the financial industry,and it is an ideal business model for the implementation of mixed operation in China.However,at this stage,China still implements a separate supervision system.In both theory and practice,the supervision of financial holding companies is lacking.Based on this,it is necessary to study the risks of financial holding companies and make relevant recommendations for the management of risks.First of all,this paper summarizes and analyzes the results of financial holding companies researched by domestic and foreign scholars.Combining with the development status,it discusses the background of the development and the theoretical as well as practical significance of studying the risk management of financial holding companies.Then,with the financial management system as the entry point,it introduces the separate operation and mixed operation,and expounds the change of China's financial industry management system.Through the comparison of two typical mixed business models,the paper analyzes the actual reasons for choosing financial control companies in China,and expounds the status quo of China's financial holding companies.Secondly,this article focuses on the risks of China's financial holding companies.The risks of financial holding companies can be divided into two types:general risks and special risks.This paper only focuses on six types of special risks which includes principal-agent risk,connected-transaction risk,capital double-calculation risk,transparency risk,regulatory arbitrage risk and power imbalance risk.And then,on the basis of analyzing the risks of financial holding companies,the paper introduces the case of risk management of financial holding companies in developed countries,and expounds them from two aspects:internal governance and external supervision.Finally,combined with the domestic development status and the experience of foreign risk management,this paper proposes to optimize the principal-agent relationship,improve the firewall system,optimize internal management,strengthen financial management,strengthen information disclosure and unify external supervision,with a view to promoting the steady development of China's financial holding companies.