Mobile Financial Risk Management Based On Real Options

Mobile finance is developing quickly both here and abroad, but there were a large number of uncertainty and risks. At the same time these risks have also hindered the industrialization and scale application of mobile finance, becoming an urgent problem in the development of mobile financial industry itself. From the view point of domestic and international researches, there is no effective risk management program of mobile finance according to its own characteristics. Apparently the risk of mobile finance has its own characteristics, from a technical level, the development and promotion of each new mobile financial businesses are facing the risk of mobile technology itself because of the its open environment; from the aspect of management, how to implement the risk analyze, cost accounting and return on investment of mobile finance does also have novel characteristics difference from the traditional financial business.The main work and innovation points are as follows:First of all, the risk management of mobile finance is modeled here. After the discussion of related definitions of mobile finance, the possible risk factors of mobile financial are analyzed from the internal and external environment. Based on these risk factors, risk sources in mobile finance are further analyzed. Then, the characteristics of mobile financial risk are also analyzed specially, in order to establish a corresponding risk management model with service income analysis and risk management. Further a risk management model of mobile financial based on real options theory is proposed here, and the application and design of real options are illustrated.Secondly, based on the real options model of risk management, the quantifying tool Value of Risk, risk sharing and the cooperation incentive of mobile finance are further discussed. By the help of pay incentives, the enthusiasm of mobile financial service providers and partners can be mobilized. Through the cooperation incentive model design, it can strengthen mutual cooperation of cooperators, where the income of mobile financial service provider and partner can achieve the maximum value as possible, to effectively control of risks may appeared in mobile finance by cooperation way.Thirdly, according to the real options and cooperation incentive mechanism, the risk control strategies are put forward. Through passive, active defense measures as encryption, access control, monitoring system, it provides a comprehensive means of risk defense of mobile financial management. Then the service diffusion model and benefit analysis design of risk control strategy are further discussed. Through the flexible use of risk control strategies of mobile finance, it can implement Pareto improvement of mobile financial risk sharing, to make the lower risk with appropriate cost.Finally, through the numerical simulation, the feasibility of the program is verified. By the real options agreement, mobile financial operators can dynamically adjust income and risk sharing proportion of mobile financial services in the whole life cycle according to the changing of market and risk condition, so as to effectively reduce the risk probability and loss of mobile finance, and improve both incomes at the same time. In the end, the research prospect and the problems are listed.