Blockchain Role in Enhancing Financial Risk Management-A Correlation Analysis in Banking Companies

Abstract

There is a strong connection between the total risk and the financial risk that an organization faces. When there is a financial risk involved, it may be very disruptive to both individual enterprises and the economy as a whole. In this study, blockchain technology and big data are used as important technologies to get a better understanding of financial risk assessments and associated regulatory research. According to the findings of this research, the best way to analyze financial risk is to combine theory with model. An analysis of the elements that are responsible for the risk is performed to arrive at the risk value. Experiments imply that the financial risk associated with combining blockchain technology and big data has been lowered by between 10 and 15 percent as a consequence of these efforts. In the quest for efficient financial risk management, this form of risk reduction may often prove to be extremely beneficial in achieving one's goals. In the not-too-distant future, a large number of financial transactions will be processed using a technology called block chain.