Studies On P2P Lending Risk Based On Rough Set Theory

As a new financial service method, online P2P lending is a direct peer to peer capital lending method based on specific information intermediates. It provides a new financing channel to those investors who can not raise capital from banks and other credit agencies.Therefore, online P2P lending compensates for the shortcoming of traditional capital market,satisfies the financial needs of individuals and small and medium-sized enterprises(SMEs),broadens the channel of capital circulation, and improves the efficiency of capital utilization.Online P2P lending develops rapidly since it got into China in 2006. According to the data center of 01 caijing, by the end of 2015, the total number of online P2P leading platforms is 3657 with accumulated transaction amount of 975 billion. However, with the market size growing, the risk also becomes more evident. By the end of 2015, there are 1733 cases of platform dissolution, moreover, the number of platforms which escape with money and suspected fraud accounted for 34.35%, with huge amount of money involved and a negative impact. Other illegal activities of platforms such as illegal absorbing bank savings and self-financing also happen constantly. As an emerging loan mode, the requirement of innovational development and the requirement of risk management conflicts with each other.Therefore, understanding and researching on the risk associated with online P2P lending possess significant importance. This article mainly research and analyze on online P2P lending and the risk management of it systematically.Firstly, the author kept up with the latest domestic and international research literatures related to online P2P lending, summarized the development process of domestic and international online P2P lending business, and analyzed the status quo of Chinese online P2P lending market.Afterwards, in order to supervise and control the risk of the whole online P2P lending system, the author summarized and analyzed the risk factors associated with online P2P lending innovation from four perspectives – the supervision organization's perspective, the enterprises' perspective, the consumers' perspective and the goverment perspective with self-regulatory organizations as representatives.Then, the author summarized the specific features of the risk factors, and set corresponding risk indicators based on those features.The innovation of this paper:(1) On the basis of the relevant reference academic research results, the author researched P2P lending risks and established the corresponding evaluation index, in order to analyze P2P lending risks from the perspective of data;(2) theauthor established a multi-level fuzzy comprehensive evaluation method based on a rough set,which simplified treatments the highly relevant indexs, in order to ensure objectivity and fairness of the evaluation results.