Risk Control System Research Articles

The extraordinary Zhengzhou flood of 7/20, 2021: How extreme weather and human response compounding to the disaster

Extreme flooding brought by climate change is becoming the new normal globally, creating numerous threats to life and economic losses. In particular, the lack of preparedness for flooding events in inland regions will compound the losses. However, the causes, impacts, and responses to these disasters in inland areas remain poorly understood. Here, using the recent 7•20 flood disaster in 2021 in the inland province of Henan, China, as an example, we examine the extreme flood, the impacts, and how the climate extremeness and inappropriate human responses caused the great damage. Results showed that the average cumulative precipitation in Zhengzhou was above 250 mm when the flood happened. 10.29 % of the total area and 7.55 % of the total population in Zhengzhou were flooded. Cropland, urban built-up, industrial, and residential areas were hit hardest in terms of land cover type and urban function zone. The Zhengzhou flood was a compound effect of multiple natural hazards reaching the region simultaneously and, on top of this, the region's extreme lack of preparation. Our paper not only took the human response into the current flood risk and flood control system but also put forward transformative measures to improve cities' adaptability to climate change in China and beyond. This paper will be a wake-up call for addressing the human factors exacerbating climate change-related disasters and will provide a reference for transformative disaster governance in inland areas worldwide.

Analysis on the Management Mode of Constructing the Risk Control System of State-owned Enterprises' Foreign Investment

With the continuous development of the current national economy, the number of foreign investment projects of state-owned enterprises has gradually increased. However, due to the influence of various external factors, the foreign investment environment is relatively complicated, and the state-owned enterprises are faced with relatively many risk problems. Based on the actual situation, this paper analyzes the necessity of constructing the risk control system of state-owned enterprises' overseas investment, and discusses the common risks of state-owned enterprises' overseas investment from three aspects: investment environment, money and finance, and investment methods. Finally, it studies in detail the management mode of the risk control system and the effective management measures to strengthen the risk control of overseas investment.

Opportunities, Challenges and Countermeasures of China's Rural Internet Finance Development under the New Situation

Rural internet finance is a new business mode combining traditional rural finance with internet technology, which has the functions of accelerating the innovation of rural financial products and inclusive finance, and has important practical significance for promoting agricultural modernization and solving the problems of agriculture, rural areas and farmers. On the basis of expounding the present situation of China's rural Internet finance development, this paper analyzes the opportunities and challenges faced by China's rural Internet finance development, and puts forward some countermeasures to promote the healthy development of rural Internet finance from five aspects: strengthening the supervision of rural Internet finance, perfecting the rural credit system, establishing and perfecting the risk control system of rural Internet finance, increasing the publicity of rural Internet finance, and cultivating rural Internet finance talents.

Research on the Application of Financial Engineering in The Risk Management and Control of Internet Financial Innovation

The article introduces the application advantages of financial engineering in Internet financial risk management and control in detail. Through investigation and research, it finds out the main risks in Internet financial innovation, and proposes effective measures to optimize risk control, such as building a risk management and control system, enhancing Internet finance. Taking an Internet financial enterprise as an example to explore the practical application of financial engineering in its risk management and control, so as to improve the risk control level of Internet finance.

Research on risk control, early warning, monitoring and decision system based on big data

In the process of survival and development of Internet financial enterprises, financial risk as an important influencing factor, it is of great significance to timely control and early warning it. Based on this, in order to improve the ability to resist enterprise for financial risk, based on the technology of data for the user's information, and combined with AHP analytic hierarchy process (AHP) to construct the evaluation model, construct a qualitative risk analysis system based on large data, for the Internet financial enterprises to control the financial risk early warning and decision support and help.

ОСОБЕННОСТИ РИСКА ПРИНЯТИЯ РЕШЕНИЯ В УСЛОВИЯХ НЕОПРЕДЕЛЕННОСТИ

This article examines the topical issue of risk management in an environment of increasing frequency over time of uncertainty, in particular the need for a deeper dive into the decision risk control system of innovation-oriented companies. The significance of decision risk in the face of uncertainty for innovation-oriented companies is demonstrated by the example of the Nokia brand. The need to elaborate an approach for innovation-oriented companies to form a risk management strategy in the face of increased uncertainty is substantiated

Legal Governance in the Smart Cities of China: Functions, Problems, and Solutions

The development approach to creating smart cities focused on data collection and processing relies on the construction of an efficient digital infrastructure and a safe trading environment under the protection of legal governance. Thus, studying the role and improvement of legal authority in the construction of smart cities is vital. This study first described the digital economy index of 31 provinces in China from 2014 to 2020, and analyzed the function of the legal governance in the development of local smart cities based on the promulgation and implementation of regulations on smart cities in the same period. The results indicate that perfect central legislation can provide a safe and stable environment for smart cities, and there is a positive correlation between the number of local norms and the development of digital economy. However, the limitation in legislation and its implementation causes legal gray areas, which hamper the development of smart cities. After conducting text analysis on multiple legal documents, we identified that the most critical issues are data security issue, data alienation issue, public data opening, and sharing issue. To this end, we examined the role that legal governance plays in the smart cities of New York and London in a case-comparison approach. Overall, we proposed future coping mechanisms for legal governance in smart city construction, such as promoting multi-subject participation in formulating legal norms, changing the model before legal regulation, and using local legal norms to determine the scope and quality of government data disclosure. This study further filled the gap in the study of China’s smart cities from the legal system of risk identification and control, which could help regulatory bodies, policymakers, and researchers to make better decisions to overcome the challenges for developing sustainable smart cities.

Asset Management Based on Risk Control and Information Systems

Asset management is needed in asset inventory. The preparation of an asset inventory is taken into account the aspects of asset management and risk management. The measurement results with SEM obtained APC values and values < 0.05 and AVIF < 5 so that the relationship between the criteria for asset management and risk management has a significant effect on the design of asset information systems. Measurement of risk management obtained 4 critical risks that affect the design of asset information systems. One of the asset information systems that meet the criteria of being integrated, easy to manage, and easy to update the data is a QR code-based check sheet. Its use in a small scope is easier to implement than using a database system.

Calculus Logic Function in Tax Risk Avoidance in Different Stages of Enterprises

Abstract During the entire development process of corporate tax risks, these risks will show different tax characteristics, which will result in four stages of tax risk evolution: the incubation stage, the development stage, the deterioration stage and the outbreak stage. During the evolution of tax risks and the establishment of an early warning mechanism, enterprises are facing both internal and external environments. From the internal perspective, the company’s business management philosophy, the quality of its staff, and the tax risk management system and procedures of the company will affect the establishment of tax risk and early warning mechanisms; from an external understanding, the regional tax environment, the country’s financial legal system, and the company’s Social relations are also important factors that must be considered in constructing a tax risk early warning mechanism. From the perspective of supporting conditions, in order to optimize the corporate tax risk early warning mechanism, this article considers the following aspects: first, the establishment of an effective internal tax risk control system for enterprises; second, the establishment of a systematic and effective tax risk control procedures; third, Efforts to adapt to the macro environment and actively respond to tax risks; Fourth, adopt effective tax planning skills; Fifth, improve the quality of tax risk prevention for all employees. When discussing the realization of the goal of the tax risk early warning mechanism, the author uses calculus knowledge to make logical derivation; in the risk attitude and tax risk early warning selection, geometric figures are used to describe people’s behavioural guidelines intuitively; in the construction of the early warning mechanism, the scoring method Visually integrated the values of various tax risk warning indicators.

Performance Verification of Bayesian Network–Based Security Risk Management and Control System for Power Trading Institutions

Risk in power trading is unavoidable for various reasons. The impact of this risk would vary based on the trading characteristics that mainly depend on the market design and power purchase agreements. So, a security risk management and control system for power trading institutions based on a Bayesian network is designed to reduce the risk of power trading projects. As a part of the network, we first provided the overall architecture of the risk management and control system, which includes a malicious network behaviour detection module, controller selection module, data transmission module, and management and control result visualisation module. Second, the hardware test design was implemented by analysing each module’s working principle and function. Based on the hardware design of the system, the regression analysis method is used to evaluate the risk of power transactions, followed by market fluctuation prediction to obtain the prediction result induced risks. The relationship between security risks and risk-influencing factors is analysed using the Bayesian network. The initial list of risks is established, the uncertain risk factors are reasoned, and the security risk management and control model of power trading institutions is tested to achieve the goal of risk management and control. The experimental results show that this method’s risk management and control efficiency are high. At the same time, this method effectively realised comprehensive risk identification by reducing the loss to power enterprises and has near-practical application value.

Risk assessment management and emergency plan for uranium tailings pond

The safety of uranium tailings pond is closely related to social stability and economic development, so it is necessary to improve the emergency management of uranium tailings pond to ensure its safety by adjusting the emergency plan. The Interpretive Structural Model (ISM) is used to analyze the structural relationship between the main risk factors leading to the occurrence of emergencies. The results show that attention should be paid to the risk factors originating from humans and infrastructures, and effective management measures should be adopted in the process of emergency management, for example, people build tighter employee access system, clarify the responsibilities of employees at all levels, and improve monitoring and organizational means. According to the results of ISM analysis, a structural risk control system can be constructed, and a defensive barrier that can effectively block the risk coupling transmission can be designed to prevent the risk from being transformed into an event. For other risks, system resilience management should be strengthened to respond to risks. The process is set as emergency response and accident response. Different management objects use different management methods to make emergency management work efficiently.

Control Supply Chain Risks in Digital Transformation

Digital transformation contributes to enterprise supply chain resilience, but how to control the risks involved and whether this control contributes to supply chain resilience remains to be explored. This paper aims to clarify the relationship between risk control and resilience in the process of digital transformation and to construct a digital transformation supply chain risk (DTSCR) control process system. In this paper, we first use the SLRs method to retrieve 469 papers to construct a dimensional system of DTSCR from the theoretical perspective; we then test whether DTSCR control helps supply chain resilience through a structural equation model; finally, based on the case study of the institute of building materials of China Academy of Building Research, we use a Bayesian believe network to construct a risk control system. Our research contributes to existing literature by improving supply chain resilience from a risk perspective, and the risk control system innovatively constructed in this paper is also of significance for enterprises to carry out DTSCR control in practice.

A Hybrid Intelligent System for Company Financial Risk Detection Based on Tree-Based Model and Deep Neural Network

At present, the process of security issuance in China has changed from examination and approval system to approval system. With the increasing stock that enters the capital market through the IPO, establishing an effective financial risk monitoring and control system of listed companies has great practical significance and application value. In the perspective of big data, this paper constructs a new practical financial early warning integration model. A total of 32,283 financial statements of 3,025 listed companies are collected from 2000 to 2017. First, this paper collected and built a financial crisis prediction database: a total of 32,283 financial statements of 3,025 listed companies occurred from year 2000 to 2017 and corresponding financial indicators including 6 primary indicators and 25 secondary indicators are collected. Next, the financial crisis model based on financial indicators is proposed and trained by the classic machine learning method such as random forest and gradient boosting decision tree. And then, through natural language processing and deep learning technology, this paper also builds a financial crisis prediction model based on financial statement text. Finally, an ensemble model is proposed and its performances are evaluated; the results indicate that the proposed ensemble model performed the best and significantly outperforms other benchmark methods for financial crisis prediction and identification, indicating that it can be employed as an intelligent identification system to enhance identification accuracy for early warning and identification of financial crisis of listed companies in China stock marketing.

Centralized systemic risk control in the interbank system: Weak formulation and Gamma-convergence

This paper studies a systemic risk control problem by the central bank, which dynamically plans monetary supply to stabilize the interbank system with borrowing and lending activities. Facing both heterogeneity among banks and the common noise, the central bank aims to find an optimal strategy to minimize the average distance between log-monetary reserves of all banks and the benchmark of some target steady levels. A weak formulation is adopted, and an optimal randomized control can be obtained in the system with finite banks by applying Ekeland’s variational principle. As the number of banks grows large, we prove the convergence of optimal strategies using the Gamma-convergence argument, which yields an optimal weak control in the mean field model. It is shown that this mean field optimal control is associated to the solution of a stochastic Fokker–Planck–Kolmogorov (FPK) equation, for which the uniqueness of the solution is established under some mild conditions.

Using the Neutrosophic DEMATEL Method to Determine the Effect of Internet Finance and Big Data Risk Control Monitoring

Internet financial (IF) is an exchanged of goods and pays money over the Internet. The IF plays a critical role in financial fields. The IF is an innovation in the market and financial. The IF is better than the traditional financial. The IF has many criteria and subcriteria. Because there are so many different types of Internet-related financial risks, it is important for the institutions that deal with them to have effective risk prevention, control, monitoring, and management systems in place and to alert the public to any new threats. The goal of this paper is to determine the impacts of IF and big data risk control monitoring. The concept of multicriteria decision-making proposed in this paper deals with four main criteria and seventeen subcriteria. This paper proposed a Decision-Making Trial and Evaluation Laboratory (DEMATEL) method for computing the influence of the IF. The DEMATAL method is integrated with neutrosophic sets for overcoming incomplete and vague information. The applications are proposed to show the outcomes of the proposed methodology.

Design of a Substation Secondary Equipment-Oriented Error Prevention System Using Wireless Communication Technology and Edge Node Cooperation

In order to solve the error prevention problem of secondary equipment in intelligent substations, this paper designs the Substation Secondary Equipment- (SSE-) oriented error risk Prevention, Control, and Management (P&C&M) system. Firstly, the basic principle of SSE error prevention is reviewed. The SSE model is expanded based on the existing microcomputer error prevention system’s Substation Primary Equipment (SPE). Thereupon, the SSE status acquisition device is designed, and the overall architecture is implemented for SSE error prevention. Secondly, edge-node cooperation is analyzed along with the specific architecture of the edge gateway. Finally, the wireless communication network is designed based on the edge gateway. The delay and flow of different data streams are compared, and the error proof verification mechanism is introduced into SSE. The numerical results corroborate that when the Sampled Value (SV) traffic exceeds 32 Mbps, the maximum delay exceeds the specified delay (3 MS). The average flow of the Manufacturing Message Specification (MMS) message is 90 kbps, which can meet the requirements of the intelligent substation. The delay of star networking is higher than that of ring networking. Meanwhile, the proposed network analyzer has a measured flow closer to the calculated flow of SSE. In the 60-hour accuracy statistics, the proposed SSE-oriented error P&C&M system reaches an accuracy as high as 84%. Therefore, the proposed SSE-oriented error P&C&M has strong feasibility. The outcome provides a reference for the intelligent development of error prevention of secondary equipment in intelligent substations.

System dynamics tool for entropy-based risk control on sleeve grouting in prefabricated buildings

PurposeThe production of sleeve grouting in prefabricated construction is routinely plagued by a variety of factors, and lack of mass data and complex environmental conditions over time make problems inevitable. Thus, a dynamic risk control system is a valuable support for the successful completion of the sleeve grouting process. This study aims to develop an entropy-based sleeve grouting risk dynamic control system.Design/methodology/approachFirst, static risk assessment was conducted through the structured interview survey using the entropy weight method, followed by a dynamic risk control technique, where indicators were simulated through system dynamics containing causal loop diagrams and stock-and-flow diagrams.FindingsFinally, three types of risk control models, namely, “tortuous type”, “stable type” and “peak loop type”, were developed in the entropy-based sleeve grouting risk dynamic control system and simulated using system dynamics in a real case.Originality/valueCompared to traditional sleeve grouting risk management, the developed system enabled dynamic control over time.

Research on simulation of risk control strategy for air traffic controllers’ unsafe acts

In order to effectively control the risk of unsafe acts of air traffic controllers, a risk control system model of the unsafe acts of controllers was constructed by using system dynamics, and the effectiveness of the control strategies was analyzed by simulation. Based on Human Factors Analysis and Classification System (HFACS) model, the causal relationship between environmental factors, organizational influences, safety supervision, adverse states of controllers and the risk of unsafe acts of controllers was analyzed, and the flow diagram was drawn. The validity of the model was verified by the validity test. The risk level of controller errors and violations was simulated and analyzed from organization influence, safety supervision and combination. The results show that the model can simulate the effectiveness of the control strategies. In the risk control of the controllers’ errors and violations, the control effect of combined strategy is the best, in which improving the rules and standards and strengthening safety education and training are the best strategies. Using system dynamics to build the risk control system model of unsafe acts of controllers can simulate and analyze the effectiveness of control strategies, and provide theoretical basis for controlling the risk of unsafe acts of controllers.

Financial Innovation in the Field of RMB Internationalization

Due to the limitations of the traditional financial system, under the background of the general trend of international financial development, the system construction of RMB internationalization has become an important financial innovation and construction project. Therefore, this project studies the financial innovation in the field of RMB internationalization, and puts forward suggestions and assumptions on the construction of the project system. The main research contents of the project include: Research on hardware construction of digital RMB cross-border transaction settlement system based on blockchain infrastructure; Research on the construction and advantages of distributed cross-border payment network based on digital currency; Research on the construction of distributed cross-border payment network and the reform of international monetary system; Research on establishing risk control and supervision system of digital RMB cross-border payment and settlement; Research on guiding third-party payment institutions to expand digital RMB cross-border payment scenarios.

Microclimate environment model construction and control strategy of enclosed laying brooder house

The growth performance and health of chicks can be significantly improved by a suitable microclimate in brooder houses. However, the microclimate of the chicken house is affected by factors such as its structure and the heat dissipation of chickens, making it is difficult to establish an accurate mathematical model and achieve effective regulation. In this paper, the environmental data acquisition system of enclosed chick brooder house was established by analyzing various environmental factors in brooder houses. According to the structural characteristics of brooder houses and the growth environment of chicks and other parameters, the microclimate simulation model of brooder houses was established using the physical law of energy balance. The coefficient of determination R2 (R-square) between simulated temperature and humidity output value and measured value was 0.7634 and 0.9740, respectively, and Root Mean Square Error (RMSE) was 1.55°C and 2.61%, respectively. The correctness of the simulation model was verified. On the basis of established microclimate models, a simulation model of fuzzy decoupling Proportion Integration Differentiation (PID) control in chicken house environments was established for the strong coupling between temperature control and general risk control system in chicken houses. Different control strategies were generated by fuzzy and logical reasoning about multiple environmental factors. The compensation coefficient was added to optimize the environmental regulation system of brooder houses. The temperature maximum deviation between the set value and the fuzzy decoupling PID controller was 0.5°C, the maximum relative error was 2.7%, the maximum deviation of relative humidity between the set value and the fuzzy decoupling PID controller was 4.93%, the maximum relative error was 10.49%.The simulation results show the control strategy meets the temperature and humidity control requirements, verify the effectiveness of the control strategy and model. The experimental results can guide the actual environmental control of brooder houses.