On the Characteristics of Ethical Risks in Financial Science and Technology

Hello, the following is the financial risk-related information I have compiled;

Financial risk is the possibility that a certain number of financial assets will suffer losses in the future. For financial management, risks exist objectively. What we need to do is to learn how to control risks and supervise financial risks.

The basic characteristics of financial risks are as follows:

(1) Uncertainty: It is difficult to fully grasp the factors affecting financial risks in advance.

(2) Relevance: The particularity of the commodity-currency operated by financial institutions determines that financial institutions have a strong correlation with the economy and society.

(3) High leverage: Financial enterprises have high debt ratio and large financial leverage, which leads to large negative externalities. In addition, financial instrument innovation and derivative financial instruments are also accompanied by higher financial risks.

(4) Endurance: Financial institutions assume the functions of intermediary institutions, which separates the corresponding relationship of the original loans. Any party in this intermediary network may have an impact on other aspects, and even industrial and regional financial risks may occur, leading to financial crisis.

The above is my answer, I hope to adopt it, thank you!