Risk Management Of The Third-Party Payment

Risk is a widespread existing concept, which relates closely to the enterprise development, therefore, more and more scholars and managers pay attention to the risk management. This paper focuses on the risk management of the third-party payment industry. The third-party payment industry is an emerging industry, and it grows very fast in recent years. According to statistics, the amount of Internet payment transactions in2011reached2.2trillion Yuan, and the average annual growth rate exceeds100%for the last five years. These amazing numbers cause much envy of many traditional industries. But in the meantime when the number increases rapidly, the supporting management system does not follow, it may cause a lot of potential risks.Before the Bank of China publishes "Payment Service Management Approaches for Non-financial institution", the industry legal risk is very high. However, with the gradual establishment of regulatory system, the problem of the illegal operations of third-party payment industry becomes more and more prominent. Once the industry begins to develop at normal speed, many companies will face serious market risk, operational risk, etc. which is vitally important for the companies. So the risk management is very important and has practical significance for the third-party payment industry.In this paper, through a lot of study and research, the author selected several most prominent risk points of the industry, carried out the analysis from different risk aspects such as market risk, operational risk, technical risk, etc, identified the life cycle of the third-party payment industry, and illustrated the competition and cooperation relationship between banks and the third-party payment enterprises by comparing of their advantages and disadvantages. A large number of cases and data statistics were cited in this paper, eventually, based on the facts, the author put forward some feasible proposals to deal with risks.