Research On The Risk Supervision Of Derivative Financial Instruments

With the rapid development of finance, types of derivative financial instruments increased dramatically. In addition to the traditional basic financial instruments, such as financial options, financial exchanges and forward contracts, Collateralized Debt Obligation, Credit Default Swap became popular in financial markets. Out of question, financial derivative instruments are important tools for risk aversion.But great risk emerges at the same time. Compared with the traditional financial transactions, the most important feature is the uncertainty of income. It may bring great loss. By the end of 2008, the global financial crisis was a wake-up call for us to pay more attention to risk supervision.Regulation deficiency of financial derivatives instruments is the most important reason of this financial crisis. Synchronization development of financial derivatives innovation and regulation is the only way to avoid accumulated systemic risk. Financial derivatives risk supervision needs supports of accounting information, the at the same time, accounting information also need financial derivatives regulation to ensure the authenticity, reliability and correlation. Therefore, this paper analyses the AIG case from accounting perspective, probes into how to use the internal and external supervision to monitor, identify and control financial derivatives risk and how the derivatives risk be disclosed reasonably to external stakeholders. In order to reduce financial derivatives risk and keep stable operation of financial system. Innovation of this paper is combination of financial derivatives risk supervision and accounting control.