Network Third-party Payment Risk Assessment And Control Studies

With the popularization of Internet and the developing of E-Business, the third party payment of Internet is born as the condition needs. The third party payment of Internet, which plays an independent mortgage of the third part role in transacting of C2C & B2C, is aimed to build a platform in low credit surroundings of Internet for partners unbelieving each other. According to the uncompleted credit systems of China, the platform, on which deals can be treated efficient between askers and bidders, can promote the development of Electronic Business better. According to the data of Yiguan International, the total amount on trading of the third party payment of Internet in first quarter of 2007, increasing 13.4% against 124.07 billion yuan in fourth quarter of 2006, reaches to 143.26 billion yuan, showing how overwhelming it grows. So far, the immaturity industry of the third party payment of Internet and the empty of laws and rules protecting and assuring the third party payment of Internet, lead to lots of problems on risks.The method I use to study the third party payment of Internet is a normative way, in which I quote the Theory of Risk Management and focus on the risk that may come out in the processing of the third party payment of Internet, so that I can identify and analyze these risks. Basing on different risks, I build decent Risk Estimating Index System and Risk Estimating Model, and point out suitable ways of risk control and managementThere are four parts of my paper. First chapter describes the model of the third party payment of Internet, which contains the payment procedures, functions and merits, and compares the status of the third party payment of Internet between inner and outer.Second proportion imports the concept of the third party payment of Internet based on Risk Management Theory, and details the risk existing in the payment procedures, including Risk of Laws, Risk of Policies, Risk of Cash in transiting, Risk of Liquidating, Risk of Market and Risk of Technologies and so on.Third part concentrates on diversified risks appearing in the payment procedures of the third party payment of Internet so that we can appraise them exclusively based on their materials and specialties, such as we use Fuzzy Comprehensive Evaluation Model to build Fuzzy Index System for valuing the credit of the third party payment of Internet, we also exert VaR Model to evaluate risk hidden in cash in transit.Final section proposes some ways to control the risks referred above depending on the risks of analyzing. In terms of participators, I figure out different ways of risk control to each partner, aiming to define the rights and liabilities contained in each part joining risk control and take correct actions in risk control.So far, there is less research on the third party payment of Internet of China. So the article I wrote is a nice attempt to it, and the outcomes may aid the risk management of the third party payment of Internet, as I think.