Research On Financial System Risk Control Based On Complex Network

Finance is at the core position of the national economic system ,and it is the "nerve center" of the national economy .One country's economic risk is largely embodied in the financial sector, and is reflected by the form of financial risk. Accumulated financial risk ,which is not solved ,to a certain degree will eventually lead to a financial crisis. The stable and order run of the financial system is of great significance to country's economic security and national security ,any form of market economy must solve the problem of financial security effectively .By the impact of economic globalization and financial integration, and technological progress and financial innovation, financial market volatility and risk rockets. how to minimize losses caused by the financial risks has become the frontier for research scholars. Based on previous research, this thesis will apply complexity science to the field of financial risk control to analyse and describe the nature of financial system. And complex network ,an important means of complex systems ,can be effectively applied to the exploration of complex systems modeling, performance analysis, macro-evolution .In this thesis, we use financial system as a model object to establish a financial complex network ,every financial subject of the entire financial network is treated as financial network nodes, and the relations between two financial subject is treated as financial edges. Meanwhile, the paper draws on the Spread Dynamics model of infection Virology to analyse the financial complex network to get the strategy of financial system network risk control .Through research, this thesis mainly obtained the following results and conclusions:First, This thesis argues that the meaning of the two-way selection weighted Scale-Free financial network model is that: financial subjects are more inclined to select companies with strong economic strength as their main financial partners.Second,we use Spread Dynamics model of infection Virology to analyse the financial system network and get the threshold value of the financial system, and this provides a theoretical basis in order to prevent the risk of transmission of the financial system effectively.Third, the economic impact to BP shareholders after oil spill in the Gulf of Mexico was modeled and analyzed.In this thesis. We find that the established network of financial systems comply with some specific network models, such as Small-World network model and Scale-Free network model.Finally, this thesis give recommendations of risk control of the entire financial system.