Research On Operational Risk Prevention Of Internet Microfinance Companies

The Internet microfinance company is essentially a microfinance company established by the local financial supervision bureau and is a quasi-financial institution.Due to policy restrictions,traditional microfinance companies can only lend in the registration area.Internet microfinance loans can rely on the Internet platform to obtain customers.They can rely on the shareholders' business background to lend on the industrial chain,thus effectively matching the financing needs of SMEs.It is of great significance to the development of inclusive finance for the country.The paper analyzes the development and actual operation of 254 Internet microfinance companies,and finds that the current distribution of Internet microfinance companies is uneven,the Internet technology level is not high,and the loan products are mainly cash loans,with local supervision as the main body.The lack of supervision is widespread.At present,there is no unified regulatory policy at the national level,and it is easy for Internet microfinance companies to face great operational risks.The paper has a good practical reference for the systematic research on the operational risks of current Internet microfinance companies.This paper takes Company A as a case to study the operational risk of Internet microfinance companies.In the process of analyzing the problems,through the combing of related literatures,the operating risks of Internet microfinance companies are classified as: market policy risks,liquidity Risk,credit risk,technical operation risk and other four types,and discuss the causes and transmission mechanism of business risks.The paper argues that Internet microfinance companies face industry lax supervision,low capital turnover rate,and difficulty for borrowers.The issue of controlling the level of Internet finance technology is not high.Combined with the actual operation of Company A,the paper analyzes the business risks faced by Company A in detail,and believes that Company A has limited operating areas,low capital turnover rate,inaccurate positioning of online loan product customers and lack of Internet financial core technology..The paper uses AHP to comprehensively evaluate the related business risks of Company A,constructs a business risk evaluation model,and designs the prevention of A company's business risks from four aspects,and proposes that Company A should expand its operating area and increase working capital.Establish a comprehensive risk control system and strengthen the construction of Internet technology talent team to achieve sustainable business development.