1. Overview of financial risk management

1. Briefly describe the definitions of risk and financial risk: risk: 1. Possibility of loss II. Uncertainty of result 3. Deviation between the result and the expected value 4. Risk is the risk of injury or loss. Financial risk: refers to the uncertainty or possibility of economic entities suffering losses in financial activities.

Second, briefly describe the characteristics and types of financial risks: characteristics: 1. Universality II. Conductivity and permeability. Concealed 4. Latency and suddenness. Duality 6. Diffusibility 7. Manageability 8. Periodic. Category: 1. Credit risk II. Liquidity risk. Interest rate risk. Exchange rate risk. Operational risk 6. Legal risk 7. Inflation risk. Policy risk 9. National risk.

Iii. Briefly describe the purpose of financial risk management: 1. Create a sustainable and stable living environment. Reduce losses in the most economical way. Protect the public interest. Maintain the stability and security of the financial system.

Four. Briefly describe the organizational structure of financial risk management: internal: 1. Shareholders' meeting, board of directors and board of supervisors. Senior managers at headquarters. Middle-level managers of the branch. Audit department 5. Grass-roots managers. External: 1. Industry self-discipline II. Government regulation

Verb (abbreviation of verb) briefly describes the process of financial risk identification: 1. Identify the business of risk 2. Identify key risk drivers. Identify risk events 4. Establish a key risk index system. Determine the risk exposure.

The intransitive verb briefly describes the main methods of financial risk measurement: 1. Probability evaluation of risk occurrence: (1) subjective probability method (2) objective probability method (3) time series prediction method (4) cumulative percentage analysis method (2) evaluation of predicted risk results: (1) risk value (2) limit test (3)

2. Basic methods of financial risk management

I. Foundation and development of modern risk analysis: Foundation: 1. Markowitz's portfolio choice 2. CAPM development in Sharp and lintner: 1. Using VaR to measure risk 2. Using RAROC to link risk management with capital gains. The proposal of 3. Total risk management and its application in financial enterprises.

2. Briefly describe the meaning of VaR and its role in risk management: Definition: Under a given probability level (confidence level), the maximum loss that a security or portfolio may suffer in a certain period of time. Role: 1. Determine the internal risk capital demand and set the risk limit. 2. Use it for portfolio. 3. Used for performance evaluation and financial supervision.

Third, briefly describe the meaning of RAROC and its role in performance evaluation: meaning: risk-adjusted return on capital, describing the income obtained by unit capital. Function: It is helpful for all the analysis and decision-making activities of financial institutions, such as allocating quotas, conducting risk analysis, managing capital, adjusting pricing strategies, and managing asset portfolios. It also contributes to capital management, financing planning, balance sheet management and compensation activities.

Four. Briefly describe the qualitative method of financial risk management: 1. Risk prevention II. Risk aversion III. Risk retention 4. Internal risk control.

Verb (abbreviation of verb) briefly describes the quantitative method of financial risk management: 1. Loss control of financial risks. Dispersion of financial risks. Transfer of financial risks. Hedging of financial risks.

The intransitive verb briefly describes the relationship between internal control and financial risk management: 1. Financial risk management environment based on internal control environment. Identification and measurement of financial risk based on financial risk assessment. Financial risk control based on internal control activities. Information exchange and feedback of financial risks based on information system control. Financial risk monitoring and evaluation based on supervision and evaluation.

3. Credit risk management

1. Briefly describe the causes of credit risk: 1. The intrinsic nature of modern financial market. 2. The uncertainty of credit activities leads to credit risk. 3. The possibility that the credit parties suffer losses leads to credit risk.

Second, briefly describe the qualitative measurement method of credit risk: 1. Expert system II. Rating method 3. Credit scoring methods -Z scoring model and θ scoring model.

Third, briefly describe the quantitative measurement method of credit risk: 1. Value at risk method II. Credit measurement system model 3. Quantitative model of credit risk iv. Credit monitoring model 5. Credit risk portfolio model.

IV. Briefly describe the control strategy of credit risk: 1. Loan pricing strategy II. Asset diversification strategy. Loan securitization. Constraint mechanism of venture capital ratio. Internal rating system of credit risk supervision capital measurement. Credit risk mitigation.

Verb (abbreviation of verb) briefly describes the composition and function of the internal rating system for credit risk supervision and capital measurement: composition: 1. Rating start 2. Rating confirmation 3. The score is overturned by 4. Rating update. Role: Ensure the internal rating of non-zero risk exposure and the risk aggregation process of retail risk exposure.

Independent of.

The intransitive verb briefly describes the methods and conditions of credit risk mitigation: Methods: Transfer or reduce credit risk through qualified collateral, net settlement, guarantee and credit derivatives. Conditions: legal certainty, enforceability, liquidity of risk mitigation tools, valuation frequency and management requirements, and guarantor rating must be higher than debtor rating.

4. Liquidity risk management

First, briefly describe the concept and causes of liquidity risk: concept: refers to the bank's inability to provide financing reliability guarantee for the reduction of liabilities or the increase of assets, that is, when the bank's liquidity is insufficient, it can't quickly increase liabilities or realize assets at a reasonable cost to obtain enough funds, thus affecting its profitability. Causes: Internal: maturity mismatch of assets and liabilities, and credit status of financial enterprises. External: 1 Impact of monetary policy 2. The influence of financial market development. Impact of customer credit risk. Sensitivity to changes in interest rates.

Two. Briefly describe the content of liquidity risk management system: 1. Effective supervision by the board of directors and senior management. Perfect liquidity risk management strategies, policies and procedures. Perfect liquidity risk identification, measurement, monitoring and control procedures. Perfect internal control and effective supervision mechanism. Effective and perfect information management system. Effective crisis management mechanism.

Three. Briefly describe the manifestations of liquidity risk: 1. All business activities of the bank are normal. 2. The bank itself has a short-term crisis. 3. There is a short-term crisis in the banking industry as a whole. This bank is in a long-term crisis.

Four. Briefly describe the liquidity management method of liquidity risk assets and liabilities: 1. Follow the principle of decentralization 2. Follow the principle of caution.

Verb (abbreviation of verb) briefly describes cash flow management measures: 1. Mismatch of net cash flow term II. Mismatch limit of cash flow term.

The intransitive verb briefly describes the content of stress test management: analyze the bank's ability to withstand pressure through stress test, consider and prevent the possible liquidity crisis in the future, and improve the bank's ability to fulfill its payment obligations under liquidity pressure.

Seven. Briefly describe the contents of emergency plan management: 1. Asset liquidity management strategy II. Debtor financing management strategy.

5. Interest rate risk management

1. Briefly describe the meaning and causes of interest rate risk: meaning: the financial risk that the fluctuation of market interest rate leads to the capital loss of assets held by commercial banks and affects the net balance of bank income and expenditure. Reason: 1. Based on financial institutions' own reasons: asymmetric term structure of assets and liabilities, poor controllability of interest rate, problems in credit pricing mechanism, inaccurate interest rate expectation and uncertainty in interest rate calculation; 2. Industry-based reasons

II. Briefly describe the classification of interest rate risk: 1. Repricing risk II. Yield curve risk 3. Benchmark risk 4. Option risk.

Three. Briefly describe the content of traditional management methods of interest rate risk: 1. Choose a favorable interest rate form 2. Formulate special clause 3. Manage interest rate sensitivity gap 4. Manage the effective duration gap.

Four. Briefly describe the types of interest rate risk innovation tools: 1. Forward interest rate agreement II. Interest rate futures. Interest rate swap. Interest rate option 5. Interest rate ceiling, interest rate floor and interest rate ceiling and floor.

6. Exchange rate risk management

1. What is exchange rate risk? What are the causes of exchange rate risk? : It refers to the uncertainty brought by exchange rate fluctuations to foreign exchange trading entities, which changes the value of assets, liabilities, profits or expected future cash flows denominated in local currency.

2. What kinds of exchange rate risks can be divided into? 1. Trading risk 2. Accounting risk 3. Economic risk

3. What methods can be used to measure exchange rate risk? 1. Measurement of transaction risk: gap limit management, value at risk 2. Measurement of economic risk: sensitivity analysis and regression analysis of income and cost III. Measurement of accounting risk: single exchange rate method and multiple exchange rate method.

Fourth, how to control the exchange rate risk? 1. Internal management method: select pricing currency method, early or deferred payment method, net settlement method, balance method, price adjustment method and hedging terms. 2. Management methods of financial transactions: spot foreign exchange transactions, forward foreign exchange transactions, forex futures trading, foreign exchange options transactions, swap foreign exchange transactions, currency swaps and money market lending.

7. Operational risk management

First, briefly describe the background of operational risk: it should not be tested.

Second, briefly describe the meaning and classification of operational risk: meaning: employees and information departments are affected by imperfect or problematic internal procedures.

Technical systems and risks caused by external events. Classification: 1. Internal fraud II. External fraud 3. Employment system and workplace safety. Customers, products and business activities. Damage to tangible assets. Information technology system. Implementation, delivery and process management events.

Iii. Briefly describe the reasons for the formation of operational risks: 1. Lack of risk management culture. Unbalanced management system. Lack of human resources. Information asymmetry of operational risk. Relatively backward technology and equipment. The relatively complicated social environment and market changes in the transition period. The financial ecological environment is not ideal.

Four. Briefly describe the relationship among operational risk, credit risk and market risk: the operational risk of products and businesses is caused by the neglect of loan management by credit managers or the increase of credit risk due to collateral management of credit business; In the field of system equipment and equipment, due to the threat of network viruses and computer hackers, banks take various protective measures to improve the security of the system, but at the same time, due to the decrease of system interface friendliness, banks lose a certain market share and increase market risks.

Verb (abbreviation of verb) briefly describes the meaning and measurement process of operational risk standard method: meaning: drawing capital based on total income. Measurement process: 1. The operational risk regulatory capital measured by commercial banks using the standard method is equal to the arithmetic average of the operational risk regulatory capital in the previous three years. 2. The annual regulatory capital of operational risk in the first three years is equivalent to the sum of the regulatory capital of nine business lines. If the sum of regulatory capital of each business line is negative, the regulatory capital of operational risk in that year is zero. 3. The annual regulatory capital of each business line is equal to the product of the total income of the business line in the current year and the corresponding β coefficient of the business line. 4. The total income of a business line is equal to the sum of the net interest income and net non-interest income of the business line.

6. Briefly describe the meaning and measurement process of operational risk substitution standard method: the meaning is abbreviated; Measurement process: same as standard method.

7. Briefly describe the meaning of operational risk scorecard method: 1. Appropriate incentives are usually provided because it is sensitive to risks. 2. The change of risk structure caused by the improvement of quality and risk control will be reflected in the scorecard, which will lead to the reduction of economic capital and the improvement of operational efficiency.

Eight, try to describe the role of internal control in operational risk control: it is the basis of operational risk management of commercial banks, ensuring the reliability of financial statements, the effectiveness and efficiency of operations and compliance with existing laws and regulations.

8. Derivative financial instruments and their risk management

Firstly, the meaning and basic characteristics of derivative financial instruments are briefly described: meaning: investment instruments created by financial institutions to meet the needs of specific customers to avoid risks. Features: 1. The change of its value depends on the change of the subject matter variable. 2. Off-balance sheet transactions. 3. "Small and wide" lever.

Two. Briefly describe the basic classification of derivative financial instruments: 1. Forward 2. Futures 3. Option 4. Exchange.

Iii. Briefly describe the functions of the derivative financial instrument market: 1. Micro-functions: risk aversion, price discovery, arbitrage and speculation. Macro function: allocating resources, reducing national risks and accommodating social hot money.

Four. Briefly describe the risks and management methods of derivative financial instruments: 1. Credit risk: When managing derivative financial instruments traded over the counter, we should carefully analyze the counterparty's performance ability and check the risk limit before trading. 2. Market risk: You need to rely on advanced mathematical and statistical techniques, databases and programs. 3. Liquidity risk: Institutions engaged in OTC financial derivatives should assess the potential liquidity risk of premature termination of derivative financial instrument contracts. 4. Operational risk: relying on sound systems and control procedures.

Verb (abbreviation of verb) briefly describes the main contents of the risk management system of derivative financial instruments: 1. Internal supervision and management of financial institutions: improve organizational structure and responsibilities, establish risk decision-making mechanism and internal supervision system, and improve risk management procedures. 2. Internal supervision of the exchange: establish a complete financial derivative instrument system, establish a derivative market guarantee system and strengthen financial supervision. 3. Macro-control and supervision of government departments: perfect legislation, perfect supervision system, strengthen supervision of financial institutions and control finance.

9. Systematic financial risk management

1. Briefly describe the meaning and causes of systemic financial risk: it refers to the systemic risk with the financial system as the risk carrier, and it refers to the uncertain state that exists objectively and the financial system itself suffers serious damage.

2. Briefly describe the essential characteristics of systemic financial risk: 1. The most basic feature is its external feature. 2. It has the asymmetry of risks and benefits. 3. It has the characteristics directly related to investors' confidence. 4. There will be systemic risks in the financing process. 5. The crisis caused by systemic risk is contagious. 6. Systemic risk involves a great deal of loss of economic output and economic efficiency. 7. Systemic risk.

Call for a policy response

Three. Briefly describe the types of systemic financial risks: 1. Inflation risk. Policy risk 3. National risk.

Four. Briefly describe the supervision method of systemic financial risk: 1. Build a multi-dimensional regulatory framework: micro-prudential regulatory objectives and macro-prudential regulatory objectives, and build a multi-dimensional regulatory framework that pays equal attention to macro-prudential supervision and micro-prudential supervision. 2. Implement comprehensive supervision methods: international guidance, flexible supervision based on risk management strategy and effective comprehensive supervision.

10. Risk management of financial institutions

1. Briefly describe the types and characteristics of commercial bank risks: type: 1. Credit risk II. Liquidity risk. Interest rate risk. Exchange rate risk. Operational risk 6. Policy risk 7. Inflation risk. Reputation risk 9. Environmental risk 10. Country risk; Features: 1. The main body of bank risk is monetary funds, not tangible assets. 2. Bank risk is closely related to the risk of its customers. 3. All businesses of banks are at risk. 4. The risks of banks can't disappear. The risk of a bank is all employees and the whole process. 6. Bank risk has a strong external negative effect.

Second, briefly describe the organizational framework of risk management of commercial banks and the model applicable to China: framework: 1. Centralized mode of risk management department II. Partition model 3. Matrix model 4. Network model; The mode suitable for China: 1. The board of directors has a risk management committee; There is a risk management department at the headquarters; And the independent management system of various risks.

Three. Briefly describe the risk management measures of commercial banks: 1. Venture capital law ii. Value at risk method 3. Risk-adjusted return on capital method iv. Credit matrix model 5. Comprehensive risk management model.

4. Briefly describe the credit risk management strategy of commercial banks: 1. Loan avoidance strategy II. Loan diversification strategy. Loan transfer strategy 4. Loan restraint strategy 5. Loan compensation strategy.

V. Briefly describe the risk management strategy of M&A loan of commercial banks;

6. Briefly describe the requirements of the three pillars of the New Basel Capital Accord for the risk management of commercial banks: 1. Implement comprehensive risk management and improve the quality of risk management. 2. Enhance the initiative of risk prevention and increase the flexibility of risk management tools. 3. Pay attention to modeling and quantitative measurement to improve the accuracy of risk management. 4. Emphasize the timely intervention of regulatory authorities and give full play to the role of regulators. 5. Enhance information transparency and emphasize market constraints.

7. Briefly describe the causes and characteristics of securities company risks: Reason: 1. Internal vulnerability of securities companies II. The price of financial assets fluctuates excessively; Features: 1. Sociality II. Extensibility 3. Cycle 4. Controllable.

Eight, briefly describe the internal business risk management methods of securities companies:

IX. Briefly describe the traditional risk management methods of insurance companies: 1. Improve the "two cores" system. Strengthen solvency management. Use reinsurance to spread risks. Scientific management of insurance investment. Establish a people-oriented and efficient management model. Improve and strengthen the supervision of insurance companies.

X. Briefly describe the contents of the internal control framework for risk management of fund management companies: 1. Guidelines for internal control laws and regulations. Establish an investment risk management system. Establish internal accounting control. Establish internal management control. Monitor and control violations.

1 1. Financial risk warning

First, briefly describe the concept of financial risk early warning: it refers to the process of detecting financial risk by using an organic whole composed of various organizational forms, index systems and forecasting methods that reflect financial risk warning signs, warning signs, warning sources and changing trends.

Second, briefly describe the objectives and principles of financial risk early warning: objectives: to prevent and predict financial risks caused by different periods and different external environments, obtain advanced risk indication information, shorten the time lag of risk management, eliminate time lag errors, stabilize expected fluctuations, and provide information support for risk supervision and decision-making. Principle: 1. Set the corresponding quantitative index system. 2. Set up a focused and hierarchical index system, highlight the core indicators, ensure that financial institutions have strong anti-risk ability, and support and supplement the core indicators with supplementary indicators, so as to realize the integrity of financial supervision content. 3. On this basis, make full use of modern information technology to build a financial system risk monitoring and early warning system.

Iii. Briefly describe the main methods of financial risk early warning: 1. Index Alert 2. Statistical indicators alarm 3. Model method.

4. Briefly describe the framework of financial risk mechanism: 1. Find the source of alert 2. Operation of financial risk early warning procedure.

Verb (abbreviation of verb) briefly describes the composition of financial risk early warning index system: 1. Micro-prudential indicators at the institutional level. Macro-prudential indicators. Market prudential indicators.

12. Financial supervision

I. Briefly describe the meaning, objectives and principles of financial supervision: Meaning: the government and its related institutions supervise and manage the operation and management of financial institutions and related financial markets on behalf of the public. Target: 1. Maintain the stability and confidence of the financial system. Reduce the risk of depositors and the financial system. Principle: 1. Principle of independence II. Principle 3 of moderation. Rule of law principle 4. Principle 5 of "three publics". Principle 6 of efficiency. Dynamic principle.

Second, briefly describe the basic methods of financial supervision: 1. Pre-screening 2. On-site inspection. Off-site inspection. Combination of internal and external audit. Post processing.

Three. Briefly describe the main contents of financial supervision: 1. Preventive supervision: market access supervision and prudential supervision II. Rescue supervision and market start-up: rescue, acquisition or merger, market exit 3. Deposit insurance system.

Four. Briefly describe the requirements of the new Basel Capital Accord for financial supervision.

Verb (abbreviation of verb) briefly describes the influence of the new Basel Capital Accord on the banking industry: 1. Its concept of balanced supervision. Its pro-business cycle characteristics 3. It has a great influence on big international banks. It has an important impact on the banking industry in emerging market countries.

The intransitive verb briefly describes the main contents of Basel III and its influence on China's commercial banks: 1. Requirements for increasing capital adequacy ratio. Strictly limit capital deduction. Expand the coverage of risky assets, raise the capital requirements for "asset securitization risk exposure", raise the risk value under pressure, and raise the capital requirements for trading business. Raise the capital requirements for counterparty risks such as OTC derivatives trading and securities financing business. 4. Introduce leverage ratio. 5. Strengthen liquidity management, reduce liquidity in the banking system risk and introduce liquidity supervision indicators, including liquidity coverage ratio and net stable asset ratio.