Research On Risk Management Of Consumer Finance Business Of Company A Under The Background Of Internet Finance

With the continuous upgrading and development of mobile Internet,big data,cloud computing and other technologies,Internet finance,as an innovative product of Internet + finance,not only reduces the cost of financial transactions,but also improves the coverage and efficiency of financial services and meets the needs of users for financial services.However,due to its low access standards and strong market demand,it rose rapidly after entering people’s sight in 2013.However,due to the imperfect regulatory system,incomplete credit investigation system,uncertain network environment and other factors,its business development is also facing many challenges.As A travel company,company A keeps pace with the development trend of The Times and starts to vigorously develop Internet financial services(including consumer finance,financial management,insurance and payment,etc.)in 2017 based on the massive users it serves and travel data accumulated by historical precipitation.Among them,by the end of August 2019,the cumulative loans of consumer finance business reached 30.6 billion yuan.However,with the continuous development of the business,the risks also come with it.How to build an effective risk management system and control and reduce the risks in the business development process has become one of the important starting points of this study.This paper takes the company’s consumer finance business as the research object.Through the analysis of the development status and risk status of this business,it finds that the main risks facing this business include the risks of dual supervision,Internet technology,information security,platform reputation and user credit default.Among them,regulatory compliance is its decisive risk,and can not be avoided,need to constantly pay attention to regulatory dynamics,and accordingly as the guiding direction of business development;Internet technology,information security and reputation risk are its unique risks,and their impact is far-reaching and unpredictable.They need to be incorporated into the overall risk management system to take necessary risk prevention and control and prevention as far as possible.However,credit risk is the main risk,especially the credit risk of the proprietary model.Data results show that the asset quality of the proprietary model has a non-performing rate of 10.19% when the overall business non-performing rate is 4.04%.Moreover,from vintage aging analysis,the average delinquency rate over 90 days is 6.46%,which is also higher than the average level of the industry.Under the above circumstances,this paper analyzes the risks and the current situation of risk management reflected behind the risks,and probes into the existing problems,that is,the non-professional management team,the lack of comprehensive risk management system,the urgent need to improve the risk management process,and the lack of scientific and effective risk identification and evaluation methods.At the same time,the related theory reference and relatively mature risk management experience,on the basis of optimization strategies and Suggestions to the company,mainly includes: establish specialized risk management team,build a comprehensive risk management system,perfecting the existing risk management processes,and application of scientific and effective method of risk identification,assessment.It is expected that on the basis of improving its own risk control ability,it can also provide help to other partners in risk control,and finally achieve the sound and sustainable development of the business.