A. Reputation risk identification
B. Reputation risk assessment
C. monitoring and reporting
D. Internal audit
Candidates can simply remember that external audit is an auxiliary means and is not included in the process. Clear reputation risk management processes include reputation risk identification, reputation risk assessment, monitoring and reporting, and internal audit.
Extended content:
The Securities Industry Association of China recently formulated and issued the Guidelines on Reputation Risk Management of Securities Companies to guide securities companies to strengthen reputation risk management, and the Guidelines will be implemented as of the date of promulgation. Securities companies are required to establish and continuously improve reputation risk management systems and mechanisms, fully consider reputation risk in strategic planning, corporate governance, business operations, information disclosure, employee behavior management and other business management fields, and implement the whole process control of reputation risk from identification, evaluation, control, monitoring, response and reporting.
The fifth chapter of the Guidelines consists of 35 articles, the main contents of which include: First, the legal basis of the Guidelines and the basic principles of reputation risk management are clarified, and reputation risk is comprehensively defined, and the reputation risk caused by the behavior of securities operating institutions and their staff in violation of the rules of honesty and self-discipline, professional ethics, business norms and rules and regulations is included in the management category. The second is to clarify the governance structure of reputation risk and the division of responsibilities of all responsible subjects, guide securities companies to establish a well-organized, clear-cut and coordinated management structure and operation mechanism, and at the same time require securities companies to establish a spokesperson system to standardize the company's news release. Third, securities companies are required to establish and constantly improve the reputation risk management system and mechanism, fully consider reputation risk in strategic planning, corporate governance, business operation, information disclosure, employee behavior management and other business management fields, and implement the whole process control of reputation risk from identification, evaluation, control, monitoring, response and reporting. Fourth, securities companies are required to establish employee reputation restraint and evaluation mechanism, strengthen employee reputation risk management from the aspects of system construction, management and control departments, personnel management, information registration, internal control supervision, etc. At the same time, companies are required to include reputation risk in the scope of employee assessment to prevent employee moral hazard. Fifth, strengthen self-discipline management. According to the Guidelines, the association can evaluate, supervise and inspect the reputation risk management of securities companies, and take self-discipline management measures or disciplinary actions against violations of securities companies and their staff. The accountability information of securities companies to relevant personnel shall be submitted to the Association in accordance with relevant regulations.
Yang Delong, chief economist of Qianhai Open Source Fund, believes that reputation, as an intangible asset cultivated and accumulated by securities companies for a long time, is not only an integral part of the core competitiveness of securities companies, but also an important strategic resource to ensure sustainable development. Securities companies mainly provide diversified financial services to customers, and their reputation is very important. Strengthening the reputation risk management and reputation capital construction of securities companies is of great significance for promoting the establishment of industry reputation restraint mechanism, maintaining industry image and market stability, and realizing high-quality development of the industry. The publication of the Guidelines is conducive to preventing some reputation incidents, standardizing the development of the securities industry and preventing industry risks.
Pan Helin, Executive Dean of Digital Economy Research Institute of Zhongnan University of Economics and Law, said that the underlying foundation of finance is credit and trust, and reputation is an important part of credit and trust. It can be said that the financial industry, as a transaction intermediary, has been built on a good reputation since ancient times. If a financial institution has credibility problems, there will be many associated risks. Damage to reputation will lead to negative external effects. The reputation risk of securities companies often extends to other risks, such as management risk and credit risk. Due to the important position of financial institutions in the macro-economy, these internal risks may also be transmitted to the outside, and even lead to the transmission of financial systemic risks among financial institutions. Therefore, the implementation of the Guidelines can not only prevent the internal risks of securities companies, but also prevent the emergence of potential systemic risks. The publication of the Guidelines requires securities companies to actively manage their reputations, take precautions and adapt to the new information dissemination environment. The Guidelines are basically consistent with the objectives of reputation risk management of other types of financial institutions before, and together constitute an important rule system for the construction of credit trusts of financial institutions in China, which is expected to improve the governance level of securities companies in the future.
Liu Xiangdong, deputy director of the Economic Research Department of China International Economic Exchange Center, said that the main purpose of standardizing the reputation risk management of securities companies is to strengthen the industry self-discipline of securities companies and create a clean industry environment. At the same time, guide securities companies to carry out all-round risk management, provide better services for investors and capital markets, and optimize the market environment that advocates fair competition.