Finanical Engineering Applications In The Financial Risk Management Of The Internet

With the development of the internet industry and the growing integration of the financial industry, changes in the current financial market system is undergoing jointly and importantly to promote the traditional finance sectors and internet finance.Customers need no longer a single financial product, but the whole chain, each link of personalized, comprehensive financial service solutions for their supply chain.Financial engineering technologies are applied to supervise the risk management of interest rates and financial markets.Early 2014,the State Council made the government work report " to promote the healthy development of Internet banking," which is the sign of how to regulate the internet financial markets: Firstly, introducing the “Logistic Regression Analysis” and“Factor Parameters Matrix Score System” to evaluate to credit risks in internet financial markets; secondly, using hedging system to reduce the price risks in internet financial markets; and then the dissertation works on the concept of “self-risks” in the financial engineering, it pointed out that how to scientifically apply the financial engineering technologies into economic markets. The dissertation has its conclusion on focusing on the different properties of traditional finance industries(i.e.commercial banks) and internet finance systems(i.e. e-Business platforms and“Third-Party” prepaid system). As the conclusion, the dissertation overlooks the future meanings of financial engineering on the behalf of changing people’s traditional social and economic lives, in this regard it reflects the profound influence of managing all new types of internet financial risks.