Financial Risk Management
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- Date Submitted: 12/03/2011 08:41 PM
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Financial Risk Management
Assignment 2
0830200102
王翰涛
Table of contents
1. Part 1 …………………………………………………………..…3
2. Introduction…………………………………………………….…3
3. Risk factors identified………………………………………….…4
4. Conclusion………………………………………………………..4
5. Part 2……………………………………………………………...5
6. Citation and reference………………………………………….…7
Part one
1.Introduction
Global offering become a popular way to raise money in current years. In China stock exchange, bank industry is the pioneer of this acting. Many banks listed on Hong Kong stock exchange to raise capital from global, not only from the Mainland China. However, international IPO involved many risk, therefore, we need to identify some risk factors for management.
2.Identified risk factors
2.1 A loan portfolio
At first, we need to ensure and maintain the quality of our portfolio. If we fail to guarantee the quality of the portfolio, then the operations and financial situations would be influenced badly.
Besides, allowance for impartment losses should be sufficient to cover the actual losses. Concentration on certain industries, regions and customers is necessary for a portfolio. Make sure the market value of collateral and guarantee can compensate loans, at least not loss too much. The classification and policy of loan should be suitable for certain region or country. Keep growing of our portfolio and prevent the deterioration in the debt payment.
2.2 Bank’s business
For the banking business, we need to be careful about implementing operational reform initiatives. Being effective in risk management and internal controlling, also, introducing information technology to assist risk management. Do fully investigation before expanding range of products and services. Try to prevent fraud from employee and the third party. Maintain the growth of customers’ deposits, and enhance information technology system to reduce business risks. Further, obey the rules and regulations conducted by...
Assignment 2
0830200102
王翰涛
Table of contents
1. Part 1 …………………………………………………………..…3
2. Introduction…………………………………………………….…3
3. Risk factors identified………………………………………….…4
4. Conclusion………………………………………………………..4
5. Part 2……………………………………………………………...5
6. Citation and reference………………………………………….…7
Part one
1.Introduction
Global offering become a popular way to raise money in current years. In China stock exchange, bank industry is the pioneer of this acting. Many banks listed on Hong Kong stock exchange to raise capital from global, not only from the Mainland China. However, international IPO involved many risk, therefore, we need to identify some risk factors for management.
2.Identified risk factors
2.1 A loan portfolio
At first, we need to ensure and maintain the quality of our portfolio. If we fail to guarantee the quality of the portfolio, then the operations and financial situations would be influenced badly.
Besides, allowance for impartment losses should be sufficient to cover the actual losses. Concentration on certain industries, regions and customers is necessary for a portfolio. Make sure the market value of collateral and guarantee can compensate loans, at least not loss too much. The classification and policy of loan should be suitable for certain region or country. Keep growing of our portfolio and prevent the deterioration in the debt payment.
2.2 Bank’s business
For the banking business, we need to be careful about implementing operational reform initiatives. Being effective in risk management and internal controlling, also, introducing information technology to assist risk management. Do fully investigation before expanding range of products and services. Try to prevent fraud from employee and the third party. Maintain the growth of customers’ deposits, and enhance information technology system to reduce business risks. Further, obey the rules and regulations conducted by...