Research on the risks of financial derivatives and risk control from the perspective of the financial crisis

Hailei Zhao¹, Dehuan Jin²

¹School of Business, Jiangnan University, Wuxi City, Jiangsu province, China, 214122
²Shanghai University of Finance and Economics, Shanghai City, China, 200433

After the economic crisis in Wall Street in 2008, the risks of financial derivatives and risk control have received great attention from countries in the world. The research on the risks of financial derivatives and risk control can effectively prevent the financial crisis. Through the extraction of the characteristics of risks of financial derivatives, the paper expounds the application of sensitivity analysis and in the risk measurement financial derivatives. The result shows that despite certain achievements of China’s financial derivatives in the development process, there is still much room for improvement. Based on the result and with reference to the practice of the UK, US and Japan in the risk prevention and control of financial derivatives, the paper proposes some suggestions.