Author(s)

Zhan Wang ¹

Affiliation(s)

¹ Faculty of Business and Economics, Monash University, Melbourne, Victoria, 3800, Australia

Corresponding Author

Zhan Wang

ABSTRACT

financial derivatives entered China in the 1990s. Because of its function of avoiding risk and creating income, it is gradually widely used by domestic commercial banks. However, financial derivatives are intertemporal, linked and leveraged, resulting in risks when used. Therefore, it is of great significance to study the risk control of financial derivatives. This paper discusses the risk control of financial derivatives based on the financial derivatives business of commercial banks. Firstly, it analyzes the scale of financial derivatives business of commercial banks, then puts forward the problems existing in the risk control of financial derivatives business of commercial banks, and finally puts forward some suggestions on the risk control of financial derivatives business of commercial banks.

KEYWORDS

Commercial bank, Financial derivatives, Risk management

CITE THIS PAPER

Zhan Wang. On the Risk Control of Financial Derivatives. Financial Engineering and Risk Management (2021) 4: 33-37. DOI: http://dx.doi.org/10.23977/ferm.2021.040607.

REFERENCES

[1] The use of derivatives by US insurers: Empirical evidence and regulatory issues[J] . Mayank Raturi.  The Journal of Risk Finance . 2019 (2)
[2] The Effective Duration and Convexity of Liabilities for Property-Liability Insurers Under Stochastic Interest Rates[J] . Kevin C. Ahlgrim,Stephen P. D’Arcy,Richard W. Gorvett.  The GENEVA PAPERS on Risk and Insurance Theory . 2018 (1)
[3] Exchange rate exposure, hedging, and the use of foreign currency derivatives[J] . George Allayannis,Eli Ofek.  Journal of International Money and Finance . 2020 (2)
[4] Determinants of corporate hedging and derivatives: A revisit[J] . Robert C.W. Fok,Carolyn Carroll,Ming C. Chiou.  Journal of Economics and Business . 2019 (6)
[5] On the measurement of Tobin’s q[J] . Wilbur G. Lewellen,S.G. Badrinath.  Journal of Financial Economics . 2018 (1)

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