Customer Risk Management and CAPM Model Application

Purpose: The purpose of this paper is to discuss the combined application of customer risk management and CAPM model, specifically including the definition, classification and assessment methods of customer risk, as well as the basic principles, formulas and assumptions of CAPM model. The paper will also analyse the application and improvement of the CAPM model in domestic and international capital markets, as well as risk management practices based on the CAPM model. Methods: A review and analysis of relevant literature. Results: Effective customer risk management can help financial institutions and investors to identify, assess and control potential risks, so as to achieve effective asset allocation and risk-return optimization. Conclusion: The combined application of customer risk management and CAPM model can help investors and financial institutions better assess and manage risks and formulate reasonable investment strategies. However, since some basic assumptions of the CAPM model are difficult to be fully established in the actual market, future research and practice should focus on improving and expanding the CAPM model to better adapt to market changes and investor needs.