Case Study On The Financial Risk Management Of P2P Platforms Of Yirendai Ltd.

Internet finance is an emerging industry.It came out with the development of Internet technology,fill up the blank in traditional finance.P2P(Peer to Peer Lending)is a branch of internet finance,its business model is to gather microfinance and lending it to people who has fund demand.P2P plays the role as credit intermediary,it fills the funding gap in traditional finance,improves the utilization efficiency of social capital.With the rapid development of the industry in recent years,many problems in P2P industry also gradually revealed.Particularly in the second half of 2018,lots of companies in the industry are facing operational crisis and pushed into bankruptcy.Besides,many companies chose to run off the business because of the declining business environment.Within the problems in P2P industry,the lack of financial risk management is the most important one.Therefore,it is necessary to study the financial risk management of P2P platforms.At first,this paper generalizes the theory of financial risk management.And then analyze existing financial risk point in the industry based on actual operating and financial conditions.Using the radar chart financial analysis model,building the evaluation model of financial risk management based on both financial indicators and non-financial indicators.Using the evaluation model to evaluate business case —Yirendai Ltd,and comparing Yirendai Ltd with the industry average level in order to find the weaknesses in financial risk management.Finally,according to the evaluation results,we deeply analyze Yirendai Ltd’s financial risk management in different aspects and offer some suggestions in order to solve the problems in financial risk management and prevent financial crsis.The combination of actual operating condition in the industry and business case analysis makes the study in this paper become more complete and convincing.The paper builds an evaluation model of financial risk management and uses this model to find out the problems of financial risk management in P2P industry.The paper provides a new way to solve the financial risk management problems in P2P industry.