Research on Financial Risk Management of Free Trade Port under the Revolution of Digital Economy

Abstract

The commencement of the full implementation phase of Hainan's free trade port building project signifies the initiation of Hainan's endeavour to establish a free trade port with distinct Chinese attributes. The maintenance of financial security in the Hainan Free Trade Port is crucial for ensuring the stable and quick development of the port, particularly in light of the accelerated speed of financial opening in its construction. In the realm of digital finance, the concept of interconnectivity and data exchange is achieved through the transformation of prospective financial data into information chains. Digital finance has emerged as a significant component of the digital economy, exerting a substantial influence on the rebuilding of the financial ecological value system and the formation of the nascent financial services industry. Nevertheless, the expeditious advancement of digital banking has engendered a range of risk management concerns. These include the swift transmission and progression of risks inside the realm of digital finance, the escalation of data security and compliance challenges, and the augmented complexity of market regulation. This study examines the issue of digital financial risk management by assessing the current situation and trends in digital financial development. It analyses the unique characteristics of digital financial risks compared to traditional financial risks and considers the current state of financial development in Hainan. The study explores the risks that should be mitigated during the development of Hainan's free trade port and proposes measures to ensure the financial security of the port. The ultimate goal is to facilitate the sustainable development of Hainan's free trade port.