Study On The Risk Management Of Financial Market Based On Var

With the development of economy globalitizion, The end of this decade has been characterized by significant instabilities in financial markets worldwide, however there are also great more system risk in financial markets ,and the risk of markets takes the place of the credit risk as the main financial risk .the management of the financial markets as the main part turns from the traditional bank's libialities into financial markets risks' management .the risk-management practices and the models are the most important instruments of developed countries' risk-measures estimation and supervising.The risk estimation of the exposure to market risks as the risk-management's core, there are many risk-management models of estimating the risk of financial markets, in this paper, the author first analyses the characteristics of the current financial market risks ,then makes a comprehensive systematic analysis and estimation of all kinds of risks present in financial market with the help of VaR (value at risk ),a world-wide valuably and widely accepted brand-new risk management tools.finally ,a substantive suggestion about the applications of VaR models to the financial markets risk management of our country is provided on the basis of the detailed analysis of the calculation of all kinds of VaR models ,along with their advantages and disadvantages and also the applications .with the development and betterment of our country's security markets ,the entry into WTO and openness of financial market ,financial product innovation and extensions of traditional bank off-balance business ,the augmentation of market risks will surely lead to risk management innovation and identity to international standards .Therefore ,the research of financial market risk management signifies a lot not only in a realistic sense ,also in a guideline sense .This is just where this paper aims.