Risk Management in China: Trends and Challenges for Banks, Asset Managers, and Securities Firms

by Hua Zhang, November 30, 2012
Industry Trends
Asia-Pacific

Abstract

According to a recent Celent survey, institutions recognize the need to enhance their risk management capability. 100% of firms surveyed recognize the need to improve the functionality of their existing risk management IT systems, 43% (especially banks) believe they must improve their business processes, and 29% recognize that their risk management capability can be significantly enhanced by adopting new risk management frameworks such as Basel III and Solvency II.

Banks are well capitalized, but deregulation and increased exposure to global market forces will drive risk management upgrades, such as CVA. Asset management companies require integrated, multiasset portfolio and risk management technologies in response to greater investor sophistication and a broad range of financial products. Securities firms face challenges of managing more complex, interconnected risks. In the report, Risk Management in China: Trends and Challenges for Banks, Asset Managers, and Securities Firms, Celent examines the risk management challenges, trends, and methods in China.

“In order to compete effectively on the global stage—and against both foreign and domestic competitors at home—financial institutions will need to develop world-class risk management capabilities,” says Hua Zhang, analyst with Celent’s Asian Financial Services Group and author of the report. “Firm-wide customer and counterparty views across investments and financial management and risk data repositories are critical for financial institutions.”

This report describes the risk management within China’s banking industry, asset management industry and securities industry, including needs, current market status, methods, and trends.

This 34-page report contains 11 figures and 7 tables. A Chinese version is also available.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Erica Ferguson
eferguson@celent.com
Tel.: +1 617 262 8225

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

About SunGard

5

Risk Management Needs in the Chinese Financial Industry

6

China Risk Management Survey: Key Findings

9

Risk Management in China’s Banking Industry

12

Risk Management in China’s Asset Management Industry

19

Risk Management in China’s Securities Industry

25

Conclusions

29

Leveraging Celent’s Expertise

31

Related Celent Research

32

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