What is the difference between the credit rating department and the risk control and compliance department of a bank wealth manager?

15 followers 0 comments Write an answer View all 4 answers Write an answer Zhihu users work in the banking asset management line. Let’s talk about the responsibilities of the two departments: 1. Credit rating: This position was initially only available for securities companies and funds, but banks

Asset management and wealth management companies are also considered to be big buyers (financiers). In the past two years, they have also begun to introduce credit evaluation. They mainly conduct on-site surveys and research on industries and entities, establish evaluation models (systems), and screen investments that meet access requirements.

Target targets (individual bonds, non-standard financiers, etc.), and conduct research on industrial and urban investment enterprises.

2. Risk control and compliance: It mainly focuses on the system construction of the whole bank and docking with regulatory agencies.

Responsible for the access of cooperative institutions and the management of credit risk (some institutions are managed by the approval and review department), compliance risk, reputation risk, and liquidity risk (some institutions are managed by the planning and finance or financial market departments).

Let’s talk about the comparison between the two departments: Credit evaluation focuses more on pre-investment, mainly to judge whether a project can be done and whether the bond can be invested.

Because of the particularity of my country's bond and investment and financing markets, credit assessment and evaluation cannot entirely rely on models. Instead, one must have a certain understanding of the market and possess certain industry experience.

Take urban investment bonds as an example. Some county-level platforms with fiscal revenue of less than 5 billion have approved 7-year corporate bonds with a coupon rate of 6%. The AAA urban investment bonds in the eastern provincial capital have a term of 5 years and a coupon rate of only 3.5%.

, just from the model analysis, are the risks of these two companies the same?

Therefore, credit rating positions are not necessarily suitable for fresh graduates with no industry experience.

Risk control and compliance: More emphasis is placed on post-investment (there are also institutions that specifically set up post-investment management positions) and the construction and implementation of the institutional level.

In terms of compliance management, it mainly focuses on the implementation of regulatory policies, anti-money laundering, case prevention and control, business continuity, etc., as well as the formulation of supporting policies for subsidiaries.

Compliance work requires less business experience.

In fact, for fresh graduates, there is a big difference between theoretical knowledge and practical operations. Since the major is risk management and the position is in a related field, it is a good thing and there is no need to worry too much about the specific department.