Risk Management in Chinese Securities Firms: A Case Study of Everbright Securities

Introduction and Background
Securities firms occupy an important position within the financial system. They play an instrumental role in financial intermediation, capital allocation, as well as wealth and investment management (Simmons, 2002; McKinsey & Company, 2012). Therefore, the importance of effective risk management in the industry cannot be overemphasized. Owing to the nature of the industry, securities firms face unique market, operational, liquidity, credit, and legal risks, which if not properly managed may hurt not only