Cargando…

Research on risk contagion mechanism of big fintech based on the SIRS model

In recent years, while the relationship between the new financial institutions, represented by financial technology companies, and the traditional financial institutions(banks, securities, insurance, etc.) has been steadily enhanced, a New Relational Network has silently emerged. Along with the rapi...

Descripción completa

Detalles Bibliográficos
Autores principales: Li, Yutong, Tan, Zhongming, Huang, Chenyu
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10490943/
https://www.ncbi.nlm.nih.gov/pubmed/37682918
http://dx.doi.org/10.1371/journal.pone.0291230
_version_ 1785103958587473920
author Li, Yutong
Tan, Zhongming
Huang, Chenyu
author_facet Li, Yutong
Tan, Zhongming
Huang, Chenyu
author_sort Li, Yutong
collection PubMed
description In recent years, while the relationship between the new financial institutions, represented by financial technology companies, and the traditional financial institutions(banks, securities, insurance, etc.) has been steadily enhanced, a New Relational Network has silently emerged. Along with the rapid expansion of big fintech companies, the possibility of financial risk breeding and spreading in the New Relational Network is also rising. This article analyzes and simulates the risk contagion mechanism of big fintech risks based on the SIRS epidemic model. The study’s findings imply that: when the number of big fintech companies infected with risk exceeds the risk threshold, the big fintech risk will spread in the New Relational Network. At this time, the number of big fintech companies infected with risk can be reduced below the threshold by enhancing the risk warning, risk management, risk buffering and blocking capabilities, and timely improving risk prevention and control measures in the post-infection phase. It means that the big fintech risk is controlled. For big fintech risks, proactive interventions are more effective than post-incident response measures. This paper makes the following recommendations for preventing big fintech risks: creating a risk monitoring and early warning system to raise the Big Fintech companies’ direct immunization rates; strengthening the big fintech companies’ risk management and risk mitigation capabilities; enhancing the internal and external supervision to achieve sustainable development of big fintech companies.
format Online
Article
Text
id pubmed-10490943
institution National Center for Biotechnology Information
language English
publishDate 2023
publisher Public Library of Science
record_format MEDLINE/PubMed
spelling pubmed-104909432023-09-09 Research on risk contagion mechanism of big fintech based on the SIRS model Li, Yutong Tan, Zhongming Huang, Chenyu PLoS One Research Article In recent years, while the relationship between the new financial institutions, represented by financial technology companies, and the traditional financial institutions(banks, securities, insurance, etc.) has been steadily enhanced, a New Relational Network has silently emerged. Along with the rapid expansion of big fintech companies, the possibility of financial risk breeding and spreading in the New Relational Network is also rising. This article analyzes and simulates the risk contagion mechanism of big fintech risks based on the SIRS epidemic model. The study’s findings imply that: when the number of big fintech companies infected with risk exceeds the risk threshold, the big fintech risk will spread in the New Relational Network. At this time, the number of big fintech companies infected with risk can be reduced below the threshold by enhancing the risk warning, risk management, risk buffering and blocking capabilities, and timely improving risk prevention and control measures in the post-infection phase. It means that the big fintech risk is controlled. For big fintech risks, proactive interventions are more effective than post-incident response measures. This paper makes the following recommendations for preventing big fintech risks: creating a risk monitoring and early warning system to raise the Big Fintech companies’ direct immunization rates; strengthening the big fintech companies’ risk management and risk mitigation capabilities; enhancing the internal and external supervision to achieve sustainable development of big fintech companies. Public Library of Science 2023-09-08 /pmc/articles/PMC10490943/ /pubmed/37682918 http://dx.doi.org/10.1371/journal.pone.0291230 Text en © 2023 Li et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Li, Yutong
Tan, Zhongming
Huang, Chenyu
Research on risk contagion mechanism of big fintech based on the SIRS model
title Research on risk contagion mechanism of big fintech based on the SIRS model
title_full Research on risk contagion mechanism of big fintech based on the SIRS model
title_fullStr Research on risk contagion mechanism of big fintech based on the SIRS model
title_full_unstemmed Research on risk contagion mechanism of big fintech based on the SIRS model
title_short Research on risk contagion mechanism of big fintech based on the SIRS model
title_sort research on risk contagion mechanism of big fintech based on the sirs model
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10490943/
https://www.ncbi.nlm.nih.gov/pubmed/37682918
http://dx.doi.org/10.1371/journal.pone.0291230
work_keys_str_mv AT liyutong researchonriskcontagionmechanismofbigfintechbasedonthesirsmodel
AT tanzhongming researchonriskcontagionmechanismofbigfintechbasedonthesirsmodel
AT huangchenyu researchonriskcontagionmechanismofbigfintechbasedonthesirsmodel