Risk Management

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Risk Management As a financial institution in current volatile financial market, we engage in both commercial and investment banking activities and are registered to do business in Germany and the US. Our business are providing multi-product financial service to clients, such as understanding service and stock research, as well as the traditional funding and investment activities. Our company tries to provide high service quality, innovation. The most important is we remain the maximization of shareholders profit as the Board's aim forever. In order to perform the business efficiency and effective, normally the board is responsible for approving group's strategy, principle market and acceptable risk. Most of shareholders are risk averse; they prefer low risk and stable return for their investment. So as the manager, we provide the analysis base on risk management. Currently, our company are heavily affected by external factors, such as the interest rate change, new regulation issued. All of related factors will influence company business strategic planning, asset decision, and profitability forward. Interest rate risk management: Our group mainly focuses on US and Germany market. There exist some uncertainty in these two markets, such as the European Central Bank has raised short-term interest rate to adjust accelerating inflation. The interest rate changes affect group negatively and positively. It means group should pay more to depositors for next future years, the cost of liability will increase and the spread income will decline, and the value of most bonds and fixed-rate loans that a bank may hold to fall. If ... ... middle of paper ... ...el of risk and keep well positioned in competitive market. There are several factors affected our company's performance and income generation, the US SEC directly prevent our main underwriting service, cause we lose a main source of revenue. But base on the hard working of management team, who change the business strategy suitably and in time. Finally our business is all performing extremely well, and get the opportunity of underwriting Berlin municipal bonds. In order to implement corporate strategy to keep good relationship with clients, we can provide long term financing to these high-profile clients. Although we can not predict with certainty whether US and Germany markets will continue in their friendly mood, we are committed to again securing for our shareholders the best possible returns in following year.

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