With continuous development in the Internet finance sector and its ever expanding circle of investors, new financial management and investment concepts have been brought to the table over the years. Yet, no matter what form the investment takes or how different its underlying concept may be, risk management is always a prime concern on the minds of investors. In particular, a low-risk yet high yielding investment model is what they desire.
What is Risk Management?
Risk management is the act of evaluating and identifying potential financial risks in a system or model, minimizing their adverse impact through strong contingency procedures. These risks can stem from a variety of factors such as economic and political instability, legal liabilities, mismanagement, accidents and natural disasters among others.
Aided by technological progress in the recent decade, risk management has now evolved with the introduction of blockchain technology. Blockchain technology is a novel form of technology that is non-tamperable and completely transparent, connecting blocks of data with cryptography for data processing. Today, blockchain is seen as technology’s latest answer to data security issues.
So, how does a risk management system work? Let’s introduce Konrad’s smart risk management system as a case study.
Konrad’s Smart Risk Management System
Konrad’s smart risk management system integrates two rising technologies in the field: blockchain technology and artificial intelligence (AI). Being a decentralized, immutable and transparent piece of technology, blockchain technology is the key in building trust between parties, ensuring that the rights of an asset and its relevant information are secured on-chain and traceable to its source. This reduces the chances of fraud and greatly minimizes the risks involved.
That being said, while risk management is the lifeline of finances, it requires a strong foundation of asset information. That is why Konrad’s smart risk management system not only traces the source of assets that are listed on-chain but also obtains relevant and updated data about the asset. At the same time, its innate AI will analyze the massive data obtained and form strategies and contingency plans to manage the risks involved.
Konrad integrates blockchain technology with AI to reduce the risks of assets that are listed on-chain, such as opacity in assets due to inaccurate information presented, or forgery.
As seen in the diagram above, Konrad’s smart risk management system consists of five elements: on-chain element, off-chain computation, risk management decision making layer, the oracle machine and smart contracts.
On-chain elements represent economic entities or parties, while off-chain computational model represents big data in finance and the machine learning models. The risk management decision layer refers to the multiple decision-making mechanisms that target various business and operations while the smart contract and oracle machine have been incorporated specifically to overcome the current constraints of the Ethereum platform.
Conclusion?
As Albert Einstein has said, “Whoever is careless with the truth in small matters cannot be trusted with important matters.” Risk management is a form of trust between the company and its clients to ensure truth and validity regardless of the size and complexity of transactions.
By leveraging on state-of-the-art blockchain technology and artificial intelligence (AI), Konrad has built its credibility and reputation through a smart risk control system that provides accurate and precise risk predictions for investments in a bid to minimize the risks involved.
To find out more about Konrad, check out its socials at:
Bitcointalk: https://bitcointalk.org/index.php?topic=5148889.0
Facebook: https://www.facebook.com/KonradPlatform/
Medium: https://medium.com/@konradholdings/
Reddit: https://www.reddit.com/r/Konrad_Official/
Telegram: https://t.me/konrad_En
Twitter: https://twitter.com/KonradHolding
Website: https://www.konrad.holdings/
Weibo: https://www.weibo.com/7041318945/profile?topnav=1&wvr=6&is_all=1
