UNNC-NFTZ Blockchain Laboratory has been granted a new patent – an original risk monitoring method for quasi-financial institutions, risk simulation systems and storage mediums. Professor Xiuping Hua, the Executive Director of UNNC-NFTZ Blockchain Laboratory and Professor in Finance at Nottingham University Business School China (NUBS China), and her PhD student Sirui Cheng made major contributions to this innovative patent.

The patent is dedicated to ameliorating risk management issues in informal financial institutions, including data availability, data quality, and other factors that impede risk monitoring and management.

The procedures proposed in this patent, include gathering news, extracting news opinion indices, conducting probability distribution fittings, using Markov Chain Monte Carlo (MCMC) sampling, measuring value-at-risk, and analysing risk scenarios in dynamic network simulations. With such an innovative design, uses of the patent allow risk managers to better monitor and manage the extreme scenarios of financial risks in informal financial institutions.

The invention patent was successfully granted on 12th November 2021.