The modern global financial system: social risks vs. technological risks

Abstract

The purpose of the work is to study the ratio of social and financial risks and to analyze their influence on the modern global financial system, as well as to develop recommendations for managing these risks. For that, the authors use the methods of regression and correlation analysis for determining the influence of various risks on the modern global financial system. At that, the indicator of the influence of social risks is the volume of the global stock market, as it is subject to the strongest and most vivid influence of “human factor”. The indicator of technological risks is the volume of the global market of digital payments, as it is peculiar for the highest level of authomatization and dependence on digital technical means and software. The resulting indicator that characterizes the state of the global financial system is global GDP per capita. Timeframe of the research covers 2006–2017. It is proved that social and digital risks determine functioning and development of the modern global financial system. This emphasizes the necessity for complex management of these risks. Recommendations for crisis management include the conceptual model of complex management of social and technological risks of functioning and development of the modern global financial system. This model offers measures for managing social and technological risks and risks of globalization, thus reducing susceptibility of the global financial system to the influence of “human factor” and its dependence on reliability of digital devices and global tendencies.