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Open Access Journal Article

Financial Innovation and Risk Management Strategies

by Sophia Smith 1,*
1
Sophia Smith
*
Author to whom correspondence should be addressed.
IRBM  2021 3(1):19; https://doi.org/10.69610/j.irbm.20210515
Received: 25 March 2021 / Accepted: 23 April 2021 / Published Online: 15 May 2021
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Abstract

The paper explores the intricate relationship between financial innovation and risk management strategies in the modern financial landscape. Financial innovation, characterized by the development of new financial products, services, and technologies, has significantly altered the nature of financial markets. This paper examines how these advancements have influenced risk management practices, with a particular focus on the challenges and opportunities they present. We analyze various risk management strategies employed by financial institutions to mitigate the risks associated with financial innovation, such as credit risk, liquidity risk, and operational risk. The discussion also delves into the regulatory and supervisory challenges faced by authorities in ensuring the stability and functionality of the financial system amidst rapid technological advancements. The paper concludes by emphasizing the importance of a balanced approach, where innovation is harnessed to enhance efficiency and resilience, while robust risk management frameworks are in place to safeguard against potential disruptions.

Keywords: Financial Innovation; Risk Management; Credit Risk; Liquidity Risk; Operational Risk.;
Copyright: © 2021 by Smith. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
Cite This Paper
APA Style
Smith, S. (2021). Financial Innovation and Risk Management Strategies. International Review of Business & Management, 3(1), 19. doi:10.69610/j.irbm.20210515
ACS Style
Smith, S. Financial Innovation and Risk Management Strategies. International Review of Business & Management, 2021, 3, 19. doi:10.69610/j.irbm.20210515
AMA Style
Smith S. Financial Innovation and Risk Management Strategies. International Review of Business & Management; 2021, 3(1):19. doi:10.69610/j.irbm.20210515
Chicago/Turabian Style
Smith, Sophia 2021. "Financial Innovation and Risk Management Strategies" International Review of Business & Management 3, no.1:19. doi:10.69610/j.irbm.20210515

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ACS Style
Smith, S. Financial Innovation and Risk Management Strategies. International Review of Business & Management, 2021, 3, 19. doi:10.69610/j.irbm.20210515
AMA Style
Smith S. Financial Innovation and Risk Management Strategies. International Review of Business & Management; 2021, 3(1):19. doi:10.69610/j.irbm.20210515
Chicago/Turabian Style
Smith, Sophia 2021. "Financial Innovation and Risk Management Strategies" International Review of Business & Management 3, no.1:19. doi:10.69610/j.irbm.20210515
APA style
Smith, S. (2021). Financial Innovation and Risk Management Strategies. International Review of Business & Management, 3(1), 19. doi:10.69610/j.irbm.20210515

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