Optimization Of Customer Financial Crime Risk Rating System In HSBC Guangzhou Branch

In 21st century,along with burst of worldwide financial crime activities,Financial Crime Risk Management is getting more and more weight for banks.HSBC,an international bank with more than 150 years history,takes Financial Crime Risk management as an essential part of risk management.However,financial crime is becoming increasingly complex and concealed.With the new format,new feature and new trend of financial crime under global economy integration,the four-indicator Financial Crime Risk Rating System now HSBC is using is too simple to reflect customers' financial crime risk correctly.As the Financial Crime Risk Rating System now HSBC is using hasn't been improved for a long time,there are some problems of the system such as insufficient coverage,week pertinence and low differentiating,leading to low quantification and unreasonable result,making great deviation of customer Financial Crime Risk Rating and even negligence in Financial Crime Risk Management.This thesis takes Customer Financial Crime Risk Management of HSBC Guangzhou Branch as the research subject,aiming to optimize its Customer Financial Crime Risk Rating System with methodological of data science.With the guidance of Financial Risk Management theory and Moral Hazard theory,this thesis analyses current situation and defects of Customer Financial Crime Risk Rating System.Based on the data of Customer Due Diligence,and with Logistic Regression analysis,this article also picks up 13 key risk indicators for Financial Crime Risk and re-structure a new Customer Financial Crime risk rating system.To ensure the accuracy,this thesis uses Variance Analysis and Data Mining as effect validation.What's more,in order to be more practical,this paper discusses the implementation and safeguards of the new Customer Financial Crime Risk Rating system according to actual situation of HSBC Guangzhou Branch.The result indicates that compared with the original Customer Financial Crime Risk Rating System,the new one has obvious advantages,which are wider coverage,stronger pertinence and obvious differentiating.Moreover,the new rating system correct the abuse that the original rating system cannot distinguish medium and low risk customer,which shows stronger reliability.In some degree,the optimization of the system enhances quantitative level of HSBC Guangzhou Branch Customer Financial Crime Risk Management,serving as a valuable methodological guidance and practical basis of Customer Financial Crime Risk Management.