The Internal Control Of The Internet Financial Based On Risk Management

Over the years due to economic, political, technological and development of small and micro enterprises and multi-level capital market structure building has been the problem of China’s financial sector, related to our national economy. 2014 national advocate the development of inclusive finance, setting off a national exercise and enjoyment of the wave of financial services to the financial rights. With the development of Internet commerce, the rise of big data era, the Internet companies use online transactions has accumulated a large user data, forming a huge information pool. Internet companies will use this information to integrate financial data model analysis of user requirements and credit rating, and to use its own platform edge began to enter the financial industry, for online users to exchange, deposit, loan business.In this paper, Alibaba Group, for example, to study its main Ali small loan company internal control risk. The full text is divided into seven sections:The first part explains the significance, background and literature review article. Interpretation of financial innovation in the field of Internet banking as there is network effects of the Internet and financial aspects, but also the risk of more different from the entity finance.The second part of the Internet for financial risk exists an overview of their risk type, and summarizes the current situation of Internet financial internal control and risk management.The third part of the risk from the perspective of the Internet to study the internal control of financial companies and Ali small loans and financial entities put internal control procedures to compare loans. By comparing that Internet banking and finance entities, due to the different sources of funds, risk control points are different; different target customers, different risk control costs; different types of risk, risk control different difficulty.The fourth part of the development model Ali finance, funding sources, business processes and development opportunities are introduced, there is a platform to explain Ali finance, low cost; follow the development of the market and customer requirements; national policy to support small and micro enterprise development opportunities.The fifth part of the analysis of actual developments Ali realistic financial risk and internal control problems exist. Ali small loans facing identity embarrassment, lack of follow-up funds; credit risk, long way to go; less complex talent; strong incoming competitors; lack of national regulatory network effects and market risks. The existence of internal control construction is not sufficient; the financial sector has not fully complied with the legal system; internal evaluation imperfect; building cultural inefficient internal financial problems.Part VI from the internal environment, risk management, control activities, supervision and evaluation and communication of information in five areas of internal control construction of small loans Ali recommendations. At the same time explain the financial internal control mechanisms to protect Ali from the system level and strategic level.Part VII describes the conclusion. Sure its Internet + platform + innovative models of finance, but also the rational control of the unique risks they face.