Legal Risk Prevention and Control in Economic Transformation: Institutional Isolation of Systemic Risks

Abstract

Economic transformation, a key driver of social development, presents both opportunities and the accumulation of systemic risks. Legal risk prevention and control, a key component in ensuring the smooth progress of economic transformation, hinges on achieving precise risk isolation and controllable management through institutionalized isolation mechanisms. This article, drawing on the formation mechanisms of systemic risk and drawing on practical cases from asset securitization, corporate transformation, and financial innovation, systematically explains the role of legal institutions in risk isolation, their implementation paths, and optimization directions. This article provides theoretical support and practical guidance for building a legal risk prevention and control system adapted to the needs of economic transformation.