Internal Control System Research of JH Securities Co., Ltd.
|Keywords||Securities Company Risk Control Internal control Internal control system|
Securities market benign operation is very important to the safety of the nationaleconomy, the specification of the securities market is helpful to prevent risks, promote themarket development, and is conducive to play the stock market functions, more conducive tothe protection of the interests of the broad masses of investors. After joining the WTO, thedomestic securities companies not only faces competition from domestic counterparts at thesame time also face the challenge of foreign investment Banks, securities companies tostrengthen their internal risk control, so it is urgent to improve the core competitiveness ofrequirements. In recent years, a large number of securities companies in China for theirmanagement out of control, problems such as poor management has been revoked, closed oradministration to take over, especially after the97Asian financial crisis and the worldfinancial crisis in2008, Chinese securities companies of the effect of internal control theproblem of the missing are very clearly displayed.Ensure that securities companies engaged in business content of the project by thecompliance and sound development of the securities industry operation, has the conditionthat the following two: strengthen the external supervision at the same time to strengthen theinternal control construction, the development of the securities industry in our country isshort, so the foreign securities industry practice development is necessary, we can also see:securities industry enterprise’s external supervision is very important, but the securitiescompanies to strengthen the construction of its internal control is a fundamental measure.Foreign institutions, especially in investment banking for securities of the company’s internalcontrol research, mainly through the establishment of various risk control model, adopt themethod of quantitative analysis to the risk of internal control, the healthy development of thedomestic securities companies for their own real needs, there are few in risk control and riskcontrol system is not perfect, strengthen and perfect the internal control system of asecurities company has become a major task faced by the securities company in China.Based on the absorption and reference securities class internal control theory, on thebasis of research results, define the securities company internal control ability and theconcept of internal control mechanism, the constituent elements; Discusses the internalcontrol and internal control mechanism and relying on the relationship between the internalcontrol ability and mechanism of the building; From the Angle of risk management is discussed under the securities of the company’s internal control mechanism innovationquestion; From the securities of the company’s business processes and capital flow twoaspects to further explore how to improve the securities company internal control ability.Finally，in the JH securities company as an example,the experience of construction ofinternal control system of securities companies to share.Internal control is a complicated system, it is necessary to policymakers, regulators,participants, industry association and the participation of social aspects, this article is fromthe perspective of risk management, the securities company’s own point of view to study.