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.