Financial Risk and its Management in Financial Innovation
Abstract
As a key driving force to promote the development of the financial industry and enhance the efficiency of financial services, financial innovation, while injecting vitality into the economy, has also triggered many new types of financial risks. The article summarizes the
various types of risks derived from the process of financial innovation and explores the root causes and transmission mechanisms. Then, on
this basis, it proposes targeted management strategies from the optimization of regulatory system, strengthening of internal control of financial
institutions, construction of risk early warning mechanism and popularization of investor education, aiming at realizing the dynamic balance
between financial innovation and risk prevention and control, guaranteeing the sound and efficient operation of the financial system, and
building a solid foundation for the sustainable development of the economy.
various types of risks derived from the process of financial innovation and explores the root causes and transmission mechanisms. Then, on
this basis, it proposes targeted management strategies from the optimization of regulatory system, strengthening of internal control of financial
institutions, construction of risk early warning mechanism and popularization of investor education, aiming at realizing the dynamic balance
between financial innovation and risk prevention and control, guaranteeing the sound and efficient operation of the financial system, and
building a solid foundation for the sustainable development of the economy.
Keywords
Financial innovation; Financial risk; Risk management; Financial regulation
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PDFReferences
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DOI: http://dx.doi.org/10.70711/frim.v3i3.6161
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