The “2022 China Financial Innovation Forum and China Financial Innovation Achievements Online Conference” hosted by “Banker” magazine was held in Beijing on September 26, 2022. This year’s China Financial Innovation Forum is titled “Digital Financial Innovation: Serving Entity The theme of “Economic and Industrial Revitalization”, focusing on the process of digitalization and the revitalization of the real industry, invites authoritative experts and industry elites in the financial industry to exchange experience and share wisdom, and jointly discuss how the banking industry can use digital innovation to serve real economy. Wang Yong, General Manager of Risk Management Department of China Construction Bank, attended the forum and delivered a keynote speech.
Risk management capability is the core competitiveness of financial institutions, especially large commercial banks. The more complicated the external situation is, the more it is necessary for risk management to play a greater role in serving the real economy and supporting high-quality business development. In this context, the risk management capability must be ahead of the business development curve, and the capability should be further upgraded. It is necessary to deepen the comprehensive, active and intelligent modern risk control system from the perspectives of system thinking, customer thinking and innovative thinking, and improve the political and political aspects of risk management. Sex, people and professionalism.
Adhere to systematic thinking, firmly establish the concept of comprehensive risk management, and enhance the political nature of risk management
Constructing a six-dimensional system thinking framework of point, line, surface, body, space-time, and system to prevent and resolve financial risks, especially to prevent systemic financial risks, is the fundamental task of financial work and the eternal theme of financial work. A single risk event and a customer’s risk point are the starting point of risk management. Risk management must focus on specific events, strengthen risk analysis, learn to see its upstream and downstream and related relationships in the process of focusing, and draw a risk transmission path map, which is risk management. ‘s veins. Focus on specific industries and fields from the risk transmission path, and form a point-to-face analysis and judgment by drawing inferences from other facts. This is the aspect of risk management. Multiple risk surfaces and their interrelated relationships form an organic whole around risk points, which is the body of risk management. Observing the different risk status and changes of the economy in different time and space is the spatiotemporal dimension of risk management. Finally, observe micro risks from a macro perspective and systematically observe the game relationship between various economic entities. It is necessary to understand the unseen, adhere to the method of systematic thinking, and re-examine the risk analysis of the aforementioned six dimensions under the framework of comprehensive risk management. Conclusion, jump out of risk management risk, this is the six-dimensional space of risk management.
Firmly establishing the concept of comprehensive risk management is the fundamental strategy to deal with the current complex and severe external situation. At present, risk points, risk sources, and risk forms have increased significantly. Various risks are intertwined. The contagion and correlation of risks are stronger than in any previous period. Comprehensive risk management must be further strengthened. Risk management should cover all risks, and bring all potential risks, new risks, and unexpected risk events into the vision of risk management. At the same time, risk management should cover all businesses. For various on- and off-balance sheet businesses of the bank, risks should be comprehensively managed from the perspective of the financial system, and risk prevention and control capabilities should be built to integrate head office, branch, domestic and overseas, parent-subsidiary, and group. The substance is more important than the form and the principle of penetration, strengthen the sharing of risk information within the group, and ensure that risk management does not leave dead ends.
Adhere to customer thinking, actively serve the financial needs of market players, and enhance the people’s nature of risk management
Adhere to innovative thinking, promote intelligent risk control and dimension upgrading projects, and enhance the professionalism of risk management work
First, risk control innovation must be forward-looking. Bank operations must be based on risk control capabilities, but this boundary is not rigid or rigid. Managers can adjust in a timely and appropriate manner with changes in the situation and goals. This requires risk control to be ahead of the business development curve and become sustainable development. moat. To have this capability, commercial banks need to continuously innovate, iterate and upgrade their risk management, and become the forefront of the application of financial technology and data assets. The second is to actively cultivate intelligent risk control capabilities that adapt to new finance. The third is to correctly understand the changes and changes in risk management. The essence and logic of risk management in the digital economy era have not changed. The external economic situation, market environment, customer needs, and technical tools are changing. Banks must adapt to changes, embrace the digital economy and financial technology, and at the same time return to common sense, not just relying on models. It is necessary to combine man-machine, online and offline, and continuously improve and improve the level of intelligent risk management. Model risk has a huge impact on banking business. At present, banks are in the process of digital transformation and have not yet formed the overall planning of model requirements, verification, review, and withdrawal. Data risk, fraud risk and model risk are coexisting and intertwined. It is necessary to effectively strengthen model risk management and prevent Risk of improper use and abuse of the model.
Wang Yong is General Manager of Risk Management Department of China Construction Bank
Responsible editor: Sun Shuang
The article was published in the “Banker Forum” column of the 9th issue of “The Banker” magazine in 2022
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