Research On Risk Control Of Internet Finance

Financial industry plays an important role in the development of a country and it’s the economic lifeline of a country.In recent years,the development of electronic technology makes the combination of finance and Internet increasingly close.With its advantages of convenience,rapidity,low transaction cost and universal benefits,Internet finance has developed rapidly,which has profoundly affected people’s life.However,the rapid development of Internet finance also brings a series of problems.Internet finance has the characteristics of finance and network,which leads to frequent risks and great harm.Since the outbreak of Internet finance in 2013,China has begun to pay attention to the development of Internet finance and pay more and more attention to risk control.This paper takes the risk control of Internet finance as the research object and the long tail theory,financial supervision theory,financial risk management theory and other theories as the theoretical guidance.Firstly,it identifies the risk types and causes of Internet finance and analyzes the risk sources from both macro and micro aspects.And then it introduce the status of Internet financial risks,including the risk status quo of three representative Internet finance models,namely third-party payment,P2 P lending and crowdfunding.This paper analyzes the current situation of risk control in Internet finance from the aspects of the supervision system of Internet finance and the status quo of risk control in main models,and finds that China has some problems in risk control,such as weak risk control ability,low effectiveness of supervision,and lack of unified supervision laws.Thirdly,the paper uses the fuzzy analytic hierarchy process to evaluate the risks of Internet finance,to find out the credit risk,legal risk and technical risk that need to be paid attention to,and to take P2 P online lending platform as an example to find out the risk control indicators.Finally,this paper puts forward some suggestions on how to control the risk of Internet finance in China from balancing risk control strategies and optimizing risk control activities.