The Risk Management Research On Internet Financial Unicorns Of China

With the development of Internet technology,unicorns have developed rapidly.Especially in Internet finance,a large number of highly valued unicorns are breeding,accounting for 28 percent of the overall valuation.But the frenzy of capital and the reckless optimism of its followers have created its "irrational exuberance".There has problem such as a surge in fraud,internal process confusion,persistent losses and falling valuations.This is mainly because the growth of unicorns in Internet finance is still in its infancy,the credit system and the regulatory laws are not perfect,lack of internal oversight,business models are radical,lead to the risk is extremely high.Facing a complex economic environment and fierce competition.In order to develop long-term,financial unicorns must pay attention to risk management and establish risk management system.On September 28 th,2017,zhongan online was listed on the main board of the "insurance technology first" halo online.As an Internet finance unicorn valued at up to 100 billion Hong Kong dollar,it went on sale in four years.Unlike other unicorns,the company has been a lossmaking business for the past few years,and was profitable in its second year,quickly entered the top ten list of unicorns in China,Its success is worth learning.This paper introduces the general situation of zhongan online and analyzes the present situation of risk management,try to find feasible risk management measures of Chinese financial unicorns.Firstly,in this paper,the main risks of financial unicorns are presented through four failed enterprise cases,for credit risk,liquidity risk,operational risk,business model risk,etc.The operational risks include compliance risk,technical risk and the risk of internal process management.we summarize the present situation of risk management of financial unicorn enterprises in China.Then take the case of zhongan online,analyze the management status of main risks of zhongan online and identify some potential risks from the macro environment,financial statements,organizational structure and business model,for compliance risk in a severe market environment,liquidity risk posed by high valuations,technical risk and business model risk relying on shareholders,operational risks maybe brought by the organization.Then,sum up the risk response measures of superior onlineand the deficiency of existing,put forward some measures to improve the deficiencies of zhongan online;Finally,from the case to the common Internet financial unicorns,we can make up for the deficiency of the risk management of unicorns in Internet finance by using the risk response measures of zhongan online.From the four aspects of supervision mechanism,profit model,business model and internal control system,the paper give advice on the risk response of domestic financial unicorns and hope to help them achieve long-term development.Unicorns have a short rise.At present,there are few researches on the risk management of specific unicorns,this paper selects Internet financial unicorns as the research object which has some innovation.At present,the attention of zhongan online is mainly focused on its novel profit model,there are few studies on its risk and management,at the same time,the paper select four representative cases to identify risks and rise to the level of the industry,combining the particularity and the representativeness.The research content of this paper can be used to evaluate the risks in the operation and management of Internet financial unicorns.