Research On P2P Network Loan Risk Management In Large Data Age

Nowadays, the field of the Internet Finance is growing rapidly. When two elements, internet and finance, are combined together, they produce a new revolutionary field of studies. Some characteristics of the internet such as file sharing brought many valuable opportunities to the field of finance, thus benefiting the development and growth of the financial field. P2P lending, as a type of internet finance, helps to solve financial problems for small and medium businesses to a certain extent. For the past two years, the rapid and uncontrollable growth of P2P lending brings considerable attention. Other than state owned enterprises, banks, many industries and businesses at risk which actively participated in P2P lending, the number of other participants are continuously growing. On one hand, the field of finance is making a great leap. However, on the other hand, it hints that many businesses are going bankrupt or forced to close down. Thus, this phenomenon brings attention towards the risk management system, and many P2P lending companies realized that risk management is a vital element for keeping themselves in business and for any future developments. The research component of this proposal is the issues of company A’s risk management system. By analyzing structures and risk management systems of foreign P2P lending companies and use it in the current market environment, company A’s P2P lending risk management system will be built and improved based on the previous assumptions.Currently, we are living the era of electronic and computational technology, also known as the big data era. The CEO of Alibaba delivered his speech at Taobao’s 10th anniversary dinner, "when we haven’t fully understood the computers, the internet somehow jumped out from nowhere. At the same time, when we haven’t understood the mysteries of the internet, the big data era just began." The big data era started a new industrial revolution or information-intensive age. Internet finance is not simply just using internet to deal with finance, but with the advanced technology and advantages of internet to create new ideas which leads to creation of new business modes, products and services in the field of finance, thus making revolutionary changes to many systems of finance. Big data is a typical representative of internet finance, and is it considered as one of the motivational factors that greatly contributes to the field of internet finance. By strengthening risk management system and supporting the precise management, Big Data assisted the development of internet finance, especially in the development of credit services. By using the newly proposed risk management theory and new advantages which are brought by Big Data to achieve the maximum competitiveness in the market. Thus, these will have theoretical and practical values towards Company A and similar businesses.This proposal uses theoretical and research analysis, external reference analysis, comparative analysis and surveys and etc. to analyze Company A’s problems related to its risk management system in order to come up with solutions for solving this kind of problems. From constructing the new system of risk management, the usage of Big Data to strengthen the risk management system to minimize the rate of bad account and improving the risk management system.