Implementing Quantitative Risk Management and VaR in a Chinese Investment Bank

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Publication Date:
July 19, 2016

Source:
The Hong Kong University of Science and Technology

The protagonist, Jasper Wang, was originally from China, but had extensive risk management experience in overseas banks. With rapid Chinese economic growth, he was eager to return to China for the right opportunity, and was persuaded by the CEO of a domestic Chinese investment bank to head their Risk Management function. His remit was to introduce “international standards” in risk measurement and management to the firm. After the initial “honeymoon” period, he began to encounter more and more resistance from his colleagues at the trading desk, expressing skepticism for the new “Value at Risk” based market risk control framework he wants to set up. He must decide how he will push a more quantitative risk and control framework within the organization in the face of domain issues, dismissal of risk management measures used outside of China, and basic cultural differences about how things may get done within a domestic firm.

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Implementing Quantitative Risk Management and VaR in a Chinese Investment Bank

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