Compliance management refers to the behavior of securities companies to formulate and implement compliance management system, establish compliance management mechanism, cultivate compliance culture and prevent compliance risks. According to the definition in the Trial Provisions on Compliance Management of Securities Companies, the basic principles of compliance management are independence, objectivity, impartiality, professionalism and coordination.
Compliance risk refers to the risk that a securities company or its staff will be subject to legal sanctions, regulatory measures, property losses or reputation losses due to the violation of laws, regulations or standards by management or practice. Compliance risk is the inducement for the existence and performance of legal risk, market risk, credit risk and liquidity risk, especially operational risk.
Management refers to the activity process in which managers in a certain organization coordinate other people's activities by implementing the functions of planning, organizing, leading, coordinating and controlling, so that others can achieve the established goals together with themselves. It is the most common and important activity in all kinds of human organizational activities.
In the past hundred years, people have called the basic principles and methods of management formed by studying management activities as management science. As a knowledge system, management is the synthesis of management ideas, management principles, management skills and methods. With the development of management practice, management has continuously enriched its content and become a guide to guide people to carry out various management activities and effectively achieve management goals.