Aspects Regarding the Design and Development of Innovative Products for Risk Management

Financial innovation represents a complex process of creation/invention and dissemination/diffusion of new instruments, technologies, institutions, and markets. The main functions that innovations perform are: moving funds, the pooling of funds, managing risk, extracting information to support decision-making, addressing moral hazard and asymmetric information problems, active support in sales and services through a payment system. Innovations, exemplified by new derivatives, securities, pooled investments, process innovations, expressed by new technologies of distributions or transactions are interdependent in the context of the evolutionary adaptation process.

Provided by: WSDOT Topic: Date Added: Mar 2011 Format: PDF

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