Risk Management Of Electronic Information Industry Based On The VaR Method

In recent years, electronic information industry with its astonishing growth rate and giant correlation function to other industry, has become one of the China’s important backbone industry, play a great role in the process of national economic development. However, in the global electronic information industry competitive situation, China’s electronic information industry is still exposed some problems and also faces certain risk. So in order to realize the industrial added value steadily, and to promote better and faster development in electronic information industry, it is necessary to identify and measure the risk of electronic information industry, and take this to predict the fluctuations of the future development of industry, Make us have a better understanding about the electronic information industry development in the future.Firstly, this paper reviews the current research status of the influencing factors of the electronic information industry’s development coming from the scholars’home and abroad, and introduced the present situation and the problems which our country’s electronic information industry development has faced. At the same time, from the internal and external aspects to identify the risk factors of electronic information industry, sums up the technology, market, management and so on amount to six risk factors.Secondly, on the basis of the analysis, this paper constructs the VaR model of electronic information industry risk measurement through the ridge regression method, China’s electronic information industry as an example of empirical research. With the application of the software "Crystal Ball", producing5000random numbers for Monte Carlo simulation, to calculate the VaR value of the electronic information industry added value in our country.Finally, this paper puts forward some countermeasures and suggestions for me development of the electronic information industry in China based on the conclusions above, and makes a summary and an outlook for the paper.