| Summary: | 碩士 === 國立臺灣大學 === 法律學研究所 === 105 === The derivatives have been flourishing and booming since 2000, which has simultaneously increase business risk in financial institutions. With the lack of proper risk management and internal control system, some of the major financial institutions, such as Lehman Brothers and Merrill Lynch, had failed in financial intermediary and reached the verge of bankruptcy.
After the outbreak of global financial crisis in 2007, many international organizations, the BASEL committee and OECD to name a few, have dedicated to finding answers to the failures of corporate governance in financial institutions. They came to the conclusion that the constant ignorance of risk management was one of the main reasons resulting in this catastrophe. Corporate governance of financial institutions had its importance and uniqueness due to their role as financial intermediary. The establishment of proper risk management measures could not only enhance the quality of financial institution itself, but also significantly reduce the impacts and damages that ripple effect might cause. Responding to these findings, many countries have legalized risk management measures, including the reform of Audit Committee and the establishment of Risk Committee or Chief Risk Officer.
Although Taiwan had fortunately escaped the direct impact of global financial crisis, the TAIEX still dropped 6000 during 2007. Concerning the irreversibility of financial globalization and the vulnerability of capital market, should Taiwan take precautionary steps to advocate the awareness of risk within financial institutions? In other words, should we consider adopting certain risk management measures to promote fine corporate governance? This article, based on the discussions above, focuses on the analysis of whether Taiwan has the urgency to reform our current regulations regarding risk management, and try to offer practical suggestions to future legal implantations.
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