Research On The Operation Process Risk Of SH Bank’s Asset Custody Business

In recent years,the continuous development of the interest rate market and the construction of a multi-layered domestic capital market have allowed national wealth to continue to accumulate at a high rate,the asset management industry to flourish,and the custody industry to be given wide room for development.The market for custody business has matured,the range of products and services has expanded,the characteristics of custody business have gradually materialized,the size of assets under custody continues to grow,and revenues have steadily increased.The custody business has become a strategic focus for the transformation and development of commercial banks.SH Bank has long emphasized the importance of asset custodianship and considered its role as a custodian to be fundamental,and has worked with the goal of providing excellent,high-quality custodial services.However,the custody services provided by SH Bank may be suboptimal due to a variety of factors,including custody practices,operational procedures,and internal custody policies,and there are many opportunities for optimization.In order to improve service quality,penetrate customer needs throughout the chain,and enhance the provision of value-added services,existing operational procedures need to be optimized in line with the rapidly evolving custody market to comprehensively promote a high standard and high quality custody industry.This paper examines the history of the selected topic,takes the relevant theories as the basis,integrates the development and characteristics of the asset management business of foreign and domestic banks,applies PEST analysis to examine the business products,service status and operational processes of SH Bank,and divides the operational processes into pre-operational risks,operational risks and post-operational risks.With regard to risks in SH Bank’s custody process,a comprehensive analysis of existing controls was conducted and recommendations were made to regulate the custody process and protect clients.The analysis and research in this paper show that the custody business is an inevitable choice for a healthy and sustainable social economy and the restructuring of the asset management industry.The process risks of an asset custody business need to be monitored in all aspects and optimized in many ways,such as systems,processes,and personnel,to minimize human-caused errors.A high level of development in the custody process contributes to the stability of the custody business and the tough battle to avoid and manage major financial risks.