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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Research on Financial System Risk Control Based on Complex Network Theory

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DOI: 10.25236/icfmhss.2024.032

Author(s)

Lu Qin

Corresponding Author

Lu Qin

Abstract

As financial technology enters a new era and the financial system enters a stage of high-quality development, new propositions need to be proposed better to meet the risk control needs of the financial market, focusing on adhering to the financial management concept of risk control as the core. Based on the dynamic evolution of complex network theory, a theoretical analysis framework for risk control is constructed according to the internal logic of the financial system. This framework can explain the risk development mechanism of the financial system, which is jointly generated by the risk propagation mechanism and risk feedback cycle mechanism involving financial institutions and market participants. From the perspective of development changes and practical deduction of risk control, the possibility of moving towards the goal of high-quality financial development is further explored. The purpose of financial system risk control is to provide services that meet expected standards for the financial market and to continuously improve the quality of risk management and enhance market satisfaction. To this end, measures such as strengthening financial control based on the internal circulation of risk quality, constructing mechanisms for interaction and communication between financial institutions and market quality perception, and establishing an evaluation system for risk and benefits should be taken to achieve high-quality development of the financial system, promote financial market stability, and truly meet the needs of financial participants.

Keywords

Complex network theory; Financial system; Risk control; High-quality development