INNOVATIVE METHODS OF NEUTRALIZING FINANCIAL RISKS

Keywords: financial risk, algorithm, innovations, methods, blockchain, quantum computing, analytics

Abstract

The purpose of this article is to consolidate theoretical knowledge regarding the methodology of financial risk management and the application of innovative methods for mitigating financial risks. Research methodology. The theoretical foundation of the research includes the works of domestic and foreign scholars on the subject, analysis and synthesis methods in studying and summarizing domestic and international experience in financial risk management, comparative analysis, a systematic approach, and analytical methods when examining the application of innovative methodologies for minimizing financial risks, abstract-logical methods in justifying theoretical generalizations and conclusions. Research results. The article conducts theoretical research in the field of financial risk management. The necessity of utilizing modern technologies and innovative methods for mitigating financial risks that are employed in the contemporary world is substantiated, including the use of quantum computing, blockchain technology, data analytics, and machine learning. These methods can identify complex dependencies and patterns in financial data, allowing for the timely detection of potential risks and decision-making based on them. Scientific novelty of the research results. Based on the theoretical study of existing methods for financial risk management, the application of machine learning algorithms and quantum computing methods is proposed, enabling fast and accurate simulations of various financial scenarios, aiding in the assessment of potential risks. They can also consider numerous variables, including price fluctuations, interest rates, currency fluctuations, and other factors that impact financial markets. Practical significance of the research results. The findings of this research will assist companies in achieving a more stable financial state and ensuring successful operations in volatile market environments, reducing the negative impact of financial risks.

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Published
2023-12-29
How to Cite
Shevchuk, Y., Kataieva, S., & Melnychuk, R. (2023). INNOVATIVE METHODS OF NEUTRALIZING FINANCIAL RISKS. Sustainable Development of Economy, (2(47), 255-261. https://doi.org/10.32782/2308-1988/2023-47-36