Analysis of the causes of risks associated with financial derivatives and proposals for risk management

The article first analyzes the causes of the risk of derivative financial instruments, both from internal and external reasons. Then, proposals are put forward to improve the risk management system for financial derivatives, improve pricing methods and quantify early warning of market price risks: creating and improving various management and regulation systems to reduce institutional risks; improving risk monitoring capabilities to prevent external risks; training in derivatives trading skills and reducing operational risks.