Recently, the State Administration for Market Regulation and the Standardization Administration of the People's Republic of China issued the National Standard Announcement No. 1 of 2023. Accordingly, two recommended national standards, the Financial Institution Risk Management - Terminology and the Financial Institution Risk Management - Framework, jointly drafted by the China National Institute of Standardization, Beijing Fund Town, Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China Banking Association, Central University of Finance and Economics, Tsinghua University, were released for implementation. Upon introduction and implementation, the two new national standards fill in the gap in the standardization of financial risk prevention and control in China and provide principles and general guidelines for risk management of financial institutions.

As China's first fundamental standard on risk management terminology for financial institutions, the Financial Institution Risk Management - Terminology provides the terminology related to risk management for financial institutions (including financial institution terminology and risk management terminology) in the form of a national standard. By proposing a risk management framework consisting of elements such as risk governance structure, risk management strategy, risk appetite, risk limits, stress testing, internal control, and internal audit, the Financial Institution Risk Management - Framework sets out the basic requirements, principles, and framework for risk management of financial institutions in the form of a national standard.

Finance is an important core competitiveness of a country and financial security is an integral part of national security. The release and implementation of the two national standards address the lack of financial risk prevention and control standards in China from the top-level design, and provide support and guidance for China's financial institutions in regulating their risk management and enhancing their financial risk prevention and control capabilities.

As the leading drafter of the two national standards and the only national demonstration provider of standardized fund institution services approved by the Standardization Administration of the People's Republic of China, Beijing Fund Town will actively promote the publicity and implementation of the two national standards in its routine operations, help prevent and resolve financial risks, and make more contributions to building a new development pattern.