FEB UI Professor Emphasises the Importance of Market and Financial Risk Studies

Measuring the uncertain is the foundation of scientific work; managing the risky is a professional and social trust.

Depok (ANTARA) - Prof. Zaafri Ananto Husodo, a professor in the field of Financial Management and Market Risk at the Faculty of Economics and Business (FEB), University of Indonesia (UI), stated the importance of conducting studies on the management of market and financial risks.

Speaking at the UI campus in Depok on Tuesday, Prof. Zaafri emphasised that the main challenges in the financial world today lie not only in high volatility but also in the increasingly tight interconnections between markets, liquidity pressures, changes in investor behaviour, and the acceleration of digital innovation.

He further explained that market risk can no longer be understood solely from one indicator or one asset class. Stock, bond, currency, and commodity markets are now increasingly connected to a digital asset ecosystem that operates almost without pause.

In such a situation, a small shock can stop as a ripple but also has the potential to develop into systemic turmoil if the transmission channels are not properly identified.

He also elaborated that volatility is not merely a statistical figure but a symptom of deeper interactions between liquidity, market participant behaviour, information flows, uncertainty, and transaction technology.

Therefore, market risk management needs to be built on a complete understanding of the market risk architecture—that is, the structure that determines how shocks form, move, and affect the stability of the financial system.

Through his inaugural book and series of research, Prof. Zaafri also encourages the development of financial management and market risk science that does not stop at the measurement aspect alone.