The Decision-Making Framework for Financial Risk Management and Control in Economic Systems |
Jun Tae Kim |
경제시스템 내의 금융위험 관리·통제를 위한 의사결정 프로그램 구성방안 고찰 |
김준태 |
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Abstract |
Understanding risk spillovers in financial markets is critical for controlling financial distress. This study proposes a new measure of the effects of tolerance of financial risks on major economic agents using both matrix and decision-making schemes as research objects. I characterize the most representative financial dynamics associated with the circular flow of capital, which are: financial position, investments, and market statistics. I find that inherent asymmetries in economic systems have a huge impact on any microfinance sector, capital market, and individual economic agents, implying the interconnectedness and systemic risk in the economic systems. The results provide useful financial decision schemes on the analysis of financial risk management, financialreal sector network, and financial empowerment. Evidence also suggests that a reliable stability assessment regime can be used to determine financial imbalances, allowing us to preemptively mitigate disturbances associated with suboptimal decision making by economic agents. |
Key Words:
Economic system, Financial Risk, Financial Decision-Making, Financial Markets |
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