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Risk Management
Primacy of Risk Management
Compliance, internal control and risk management are the key components of the company culture which ensures a sustainable growth for our company and are deemed as our company’s competitive edge . Therefore, we always place the highest priority on risk control, eliminating any speculation, fluke or edge ball in the execution.
The concept of risk control:
- Comprehensive risk management is the basic guarantee for the investors’ interests and the development of the company
- Risk cannot be eliminated, but can be managed and controlled
- Every employee should be involved in risk management
The culture of risk control:
- Three lines of safeguards with the participation of all employees
- One-vote veto of compliance and risk control
- No record of significant penalties by the regulator since inception
The Four Pillars of Risk Management
- Three lines of safeguards
- Two meetings
- One platform
- Internal control policy in investment and research process
- Risk control threshold for investment transaction
- Investment and research system
- Transaction system
- Valuation system
- Performance system
- Self-build system
- 6 risk control staff
- 8 compliance staff
- 2 internal auditors
Risk Control Process
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Risk recognition
Recognize market risk, credit risk, liquidity risk, etc.
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Risk Analysis
Analyze the risk using qualitative and quantitative methods including stress tests ，internal credit rating system, etc.
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Regular Reports
All risk reports are sent to investment team, the management and clients regularly for risk assessment
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Risk Control Decision
The management makes risk control decision according to the risk management opinion
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Risk Control
Execution of risk control policies