An Analysis On The Security And Risk Management For Electronic Money Activities

As a new payment method, which is based on the open networks, electronic money doesn't change the essence of currency. Since it can also realize the three basic functions of currency, theoretically speaking, it is a reform to the traditional money stuff. There are many kinds of electronic money products, which provide a variety of network payment solutions. Traditional banking risks may also arise from electronic money activities, and traditional theories of risk management is still applicable. While, since electronic money has the property of security, anonymity, efficiency and cross-border, the characteristics of its risks are different. The practical consequences of traditional risks may of different magnitude. Through the analysis of the behavior, characteristics and causes of the three main risks in the electronic money activities, including operational risk, legal risk and reputational risk, the author provides many possible risk controlling measures and concludes with a series of risk management strategy, both macrocosmically and microcosmically.