Main characteristics of financial risks

The main features of financial risks are as follows:

Features:

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 close ties 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. Contact: Financial institutions assume the functions of intermediaries, separating the corresponding relationship of 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.

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.

Brief introduction to financial risks:

Financial risks can be divided into market risks, institutional risks and institutional risks. However, the biggest risk in China comes from the influence of the traditional system and the irregularities caused by poor supervision.

Due to the long-term accumulation of institutional factors, including the influence of the traditional planned economy system, the construction funds of state-owned enterprises rely too much on bank loans, and bank credit funds are financialized; Coupled with poor internal management of financial institutions, huge bad debts are generated, resulting in low quality of financial assets.

The irregular operation of China's securities and futures market has disturbed the normal order, resulting in a large number of illegal acts. Some securities institutions and enterprises (including listed companies) collude with a few banking institutions to make huge profits and introduce the speculative risk of the stock market into the banking system.

Some enterprises and financial institutions evade state supervision and illegally carry out overseas futures trading, causing huge losses to the country; Listed companies are not standardized and even become a means of poverty alleviation.