The Evolution of Finance Risk Measurement : Incentives, Influence and Implications
Yanlin Chen
Abstract
Yanlin Chen
Abstract
Since nearly half century, finance risk management has had many huge changes in management idea, organization system, risk management content and the method. This article promulgates that, financial institutions' pursuing profit, the complex and changeable external environment, advancement of financial theory and technology as well as the reconsidering of heavy loss events have profoundly promoted finance risk management evolution. Along this clue, this article has further analyzed the profound influence of this evolution and the enlightenment significance to our country financial industry development.
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Since nearly half century, finance risk management has had many huge changes in management idea, organization system, risk management content and the method. This article promulgates that, financial institutions' pursuing profit, the complex and changeable external environment, advancement of financial theory and technology as well as the reconsidering of heavy loss events have profoundly promoted finance risk management evolution. Along this clue, this article has further analyzed the profound influence of this evolution and the enlightenment significance to our country financial industry development.
Key concepts: Incentive, Risk management, Enlightenment, Profit (economics), Economics, Financial risk, Finance, Business