Risk control model is the abbreviation of risk control model.
Often used in credit guarantee companies to control business risks.
At present, there are mainly risk control models in China: the risk control model developed by ICBC.
In the highly refined risk control model, it is very important to use advanced statistical measurement model to describe the correlation of price fluctuations of various financial assets more accurately. In real financial transactions, we will face hundreds of financial assets, so we need a statistical model that is flexible in theory and effective in practice, and can describe, estimate and simulate the correlation of a large number of risk factors at the same time. In scientific research, we constantly explore and try to find a more flexible model based on the existing model to accurately and efficiently describe the dependence among various high-dimensional financial risk factors. Of course, a highly quantified quantitative risk model must be able to run relatively quickly in the practical application of the industry, so as to predict and monitor the risks of various financial portfolios in real time.
This highly quantified risk control model will always calculate the risks of various asset portfolios in the future for exchanges, clearing houses and major brokerage companies, so as to always control the market risks of various financial transactions within a reasonable range, make derivatives market transactions run stably, and minimize the crisis caused by huge price fluctuations.