Risk Control and System Paradigm of Nonlinear Financial System Based on Chaos Theory
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Wenjun Shi, Yanfeng Ding, Qiaoling Chen, Guoliang Cai
At present, financial risk events have multiple trends, multiple factors affect each other, and the disposal environment has undergone significant changes. However, because of the complexity of economic risk outbreak and development, the traditional management theory can not make satisfactory explanation and effective prediction of financial risk, and the conclusion of the research often deviates from the reality, which raises a major challenge to the traditional management theory, and also puts forward a severe test to the ability of financial risk management. Therefore, how to perfect the financial risk management system, promote the innovation of financial risk management, and better protect the property safety of the people is a major subject before us. Financial risk is a nonlinear and complex evolution process chaos theory is a new science to study nonlinear system and its evolution. The understanding of social phenomenon is different from the traditional science. Chaos theory reveals the inherent law of financial risk about complex phenomenon. This not only provides a new way for us to re-examine and respond to economic risk management, but also provides a new theoretical basis for us to construct a more scientific and reasonable economic risk management system.
Chaos Theory, Financial Risk, Financial Risk Management, Uncertainty, Emergency Management