Risk Management Information
Fubon Securities' risk management mechanism effectively identifies, measures and controls all risk factors the Company faces. The comprehensive mechanism ensures our business operations a safe and stable environment. The Company was given a “Level 1 Rating (Excellent) in High Risk & Complexity Group” in the 2019 risk management evaluation. Results of the risk management evaluations in past years are as follows.
Risk Management Evaluation
| Fubon Securities Risk Management Evaluation | Rating |
|---|---|
| 2019 | Level 1 (Excellent) |
| 2016 | Level 1 (Excellent) |
| 2013 | Level 1 (Excellent) |
| 2010 | Level 1 (Excellent) |
| 2008 | Level 2 (Good) |
Capital adequacy ratio
The Company’s quantitative data on capital adequacy in 2020 are as follows.
| December 2020 | Average | |
|---|---|---|
| Capital adequacy ratio | 333% | 379% |
Risk equivalent
Capital adequacy ratio reported in December 2020
Unit: NT$
| Item | Value |
|---|---|
| Operational risk equivalent | 7,766,629,608 |
| Qualified self-owned net capital | 25,891,149,041 |
Value at Risk
The Company adopts the VaR model in our integrated quantitative management on market risks. Quantitative data of each risk category are as follows.
Unit: NT$1,000
| January to December, 2020 | |||
|---|---|---|---|
| General value at risk(unit: NT$1,000) | Highest | Lowest | Average |
| Exchange rate | 2,479 | 602 | 1,428 |
| Interest rate | 146,644 | 10,489 | 75,553 |
| Equity | 163,476 | 49,864 | 94,801 |
| Fluctuation | 38,526 | 2,281 | 13,859 |
| Sum | 246,942 | 64,087 | 163,213 |