Author(s)

Yuting Hu

Corresponding Author

Yuting Hu

Abstract

This paper addresses issues related to risk measurement, quantitative analysis, and model construction in financial markets by proposing a risk quantification analysis model based on financial engineering. First, a financial risk measurement calculation method is established based on financial risk assessment theories and methods, providing information on risk load application, key parameter selection, and feasibility verification of the assessment model. Secondly, to eliminate uncertainty in risk assessment, a strategy for model quantification and parameter setting is proposed. Furthermore, a quantitative analysis model is constructed, taking into account both normal and extreme market conditions to more accurately describe financial risk. Finally, a financial risk quantification analysis system is developed based on this algorithm, and the effectiveness of the proposed algorithm is demonstrated through risk analysis under normal market conditions, extreme market conditions, and free boundary conditions.

Keywords

Financial Risk Assessment; Quantitative Analysis; Model Construction; Risk Measurement