Abstract
This paper analyzed financial mechanism in handling industrial risks in the light of dissipative system theory that internal and external fluctuations could influence system stability. Internal fluctuations from system factors and external fluctuations from environment could lead a system to diverge its path, and in industrial system an upward path is viewed as opportunity and a downward path as risk. This paper classified risk preventing finance into three types: (1) risks from fluctuations inside industries, including node fluctuations and link fluctuations; (2) risks from fluctuations from adjacent environment; (3) risks from macro-environment fluctuation. This paper demonstrates effects of industrial risk management finance by Lotka-Volterra stochastic differential dynamics equation modeling and numerical simulation method.
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