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Research on Risk Management of Internet Finance

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DOI: 10.23977/emsd.2019.040

Author(s)

Fangfei Yang

Corresponding Author

Fangfei Yang

ABSTRACT

The Internet is an intelligent product of the development of computer technology [1]. It is a single galactic international network connected by a universal set of protocols between networks. Under the rapid development of Internet technology, the management mode of traditional finance has been subverted, which is reflected in the fact that Internet technological means has improved the service efficiency of traditional finance, while Internet technology and thinking have changed the transaction structure of finance [1], thus leading to a new form of financial means with the main concept of “convenient and efficient, open and transparent, as well as resource sharing”. Such form reduces the information asymmetry, cuts transaction costs, promotes rapid economic development and improves people’s quality of life. However, it is accompanied by the negative aspects of this financial means. This is mainly embodied in the fact that the development of financial regulation cannot catch up with the development rate of new finance, which brings unpredictable risks. These risks are characterized by uncertainty and correlation. The research object of this thesis is the risk management of Internet finance. Under the background of current development of the Internet, this thesis studies the development situation and main modes of Internet finance, analyzing its main risks and proposing corresponding risk management strategy suggestions. The risks mainly include technical security risks, laws and regulations risks, Internet financial business model risks and so on [2]. This thesis will analyze and make suggestions according to the causes, dissemination characteristics and hazards of these risks.

KEYWORDS

Internet finance, risk management

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