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

摘要

Before the recent global financial crisis it was widely recognized that financial innovation is one of the most powerful engine of economic growth (Miller, 1986; Merton, 1992) with a robust potential to spread benefits to the entire economy (Bresnahan, Trajtenberg, 1995; Helpman, 1998) and also capable to actively compensate the sources of weakness. Financial innovations support the growth of firms at lower costs. This process is also sustained by an active management dedicated to the stimulation of innovator's potential (Michalopoulos, Laeven, Levine, 2010). The recent crisis has changed the perception regarding the financial innovation. In fact, the "negative innovations", associated with the difficulty of understanding the critical mechanisms and the artificial elements in pricing processes are mixed with the gaps in regulation and a poor understanding of the mechanisms that spread systemic risk. Other authors (Johnson, Kwok, 2009; Litan, 2010; Mishra, 2010) had demonstrated that financial innovations contain a mixture of different elements. The analysis of the future of financial innovation should consider the new features of these products, the evolutionary methods for design and adaptation to regulation, the valuation in the context of a new dynamics and a new life cycle. Our application is dedicated to innovative products for SME's financing.