Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics
Affected by the COVID-19 pandemic and the economic situation, many enterprises have fallen into financial crisis. In order to explore the causes of enterprise financial risk and the conduction path of risk sources, this paper starts from the theory, characteristics, and path of financial risk conduc...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-12-01
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| Series: | Systems |
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| Online Access: | https://www.mdpi.com/2079-8954/10/6/247 |
| _version_ | 1797455144274624512 |
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| author | Zhi Zhang |
| author_facet | Zhi Zhang |
| author_sort | Zhi Zhang |
| collection | DOAJ |
| description | Affected by the COVID-19 pandemic and the economic situation, many enterprises have fallen into financial crisis. In order to explore the causes of enterprise financial risk and the conduction path of risk sources, this paper starts from the theory, characteristics, and path of financial risk conduction, combines Hall three-dimensional structure and system dynamics models, establishes the path of enterprise financial risk conduction (causality graph), and combines the value-at-risk VaR model to measure the risk. Based on this methodology, a three-dimensional multiple risk interaction and dynamic–static combination of an enterprise financial risk conduction model is established, aiming at identifying the sources of financial risk in different periods and providing timely risk control countermeasures to avoid financial crises. This paper does not refine some of the indicators and takes into account the probability of different scenarios and/or the number of trigger strategies to avoid or reduce risk. In the future, refining the indicators to include considerations such as production technology will enable a more robust model of corporate financial risk conduction. |
| first_indexed | 2024-03-09T15:47:18Z |
| format | Article |
| id | doaj.art-029fb018d9c74af1810e35783dd5307b |
| institution | Directory Open Access Journal |
| issn | 2079-8954 |
| language | English |
| last_indexed | 2024-03-09T15:47:18Z |
| publishDate | 2022-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Systems |
| spelling | doaj.art-029fb018d9c74af1810e35783dd5307b2023-11-24T18:22:30ZengMDPI AGSystems2079-89542022-12-0110624710.3390/systems10060247Research on Enterprise Financial Risk Conduction Mechanism Based on System DynamicsZhi Zhang0School of Business Administration, Northeastern University, Shenyang 210100, ChinaAffected by the COVID-19 pandemic and the economic situation, many enterprises have fallen into financial crisis. In order to explore the causes of enterprise financial risk and the conduction path of risk sources, this paper starts from the theory, characteristics, and path of financial risk conduction, combines Hall three-dimensional structure and system dynamics models, establishes the path of enterprise financial risk conduction (causality graph), and combines the value-at-risk VaR model to measure the risk. Based on this methodology, a three-dimensional multiple risk interaction and dynamic–static combination of an enterprise financial risk conduction model is established, aiming at identifying the sources of financial risk in different periods and providing timely risk control countermeasures to avoid financial crises. This paper does not refine some of the indicators and takes into account the probability of different scenarios and/or the number of trigger strategies to avoid or reduce risk. In the future, refining the indicators to include considerations such as production technology will enable a more robust model of corporate financial risk conduction.https://www.mdpi.com/2079-8954/10/6/247financial riskfinancial risk conduction pathsystem dynamics |
| spellingShingle | Zhi Zhang Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics Systems financial risk financial risk conduction path system dynamics |
| title | Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics |
| title_full | Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics |
| title_fullStr | Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics |
| title_full_unstemmed | Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics |
| title_short | Research on Enterprise Financial Risk Conduction Mechanism Based on System Dynamics |
| title_sort | research on enterprise financial risk conduction mechanism based on system dynamics |
| topic | financial risk financial risk conduction path system dynamics |
| url | https://www.mdpi.com/2079-8954/10/6/247 |
| work_keys_str_mv | AT zhizhang researchonenterprisefinancialriskconductionmechanismbasedonsystemdynamics |