The Risk Analysis Of Internet Consumer Finance Of JD.com

As a new form of Internet consumer finance based on the electronic commerce is constantly developing and growing.It has been gradually beyond the P2 P consumer credit,becoming the most important form of Internet consumer finance.Electronic commerce companies such as JD.com mix consumer finance into the consumer scene with the help of Internet,breaking the constraints of consumer's budget through credit buying or hire purchase,using big data to realize better risk control.In the expansion of business,it brings great convenience to consumers simultaneously.But risk control is the core element in the development of Internet consumer finance based on the electronic commerce.Therefore,this article use JD.com as the classic case,analyzing the risk of electronic commerce company when doing Internet consumer finance business,putting forward some policy recommendations.Firstly,this article analyze the development situation of consumer finance of JD.com through its development history,current status of related products and services,its advantages compared to the traditional consumer finance and its essence.Then this article analyze the risk management model of JD.com and its hidden danger.In the case analysis section,firstly,qualitative analysis the potential risks of JD.com in the development of consumer financial services,including the traditional financial risks such as Credit risk,operational risk,liquidity risk and market risk,new form of financial risks such as network security risk and long-tail risk.Because the use of Internet and big data bring new opportunities and challenges to JD.com,this article will also analyze which risk factors become stronger and which risk factors get relieved.Then this article use the qualitative and quantitative methods Fuzzy Analytic Hierarchy Process(FAHP)to explore which risk factor is the dominant factor among the many factors and propose how to control the risks at a low levels.According to the result of empirical study,we find that the network security risk and credit risk are the leading risk factors.Based on the analysis of the case,this article put forward the policy recommendations through the construction of risk control system,consumers,network security and business management to prevent risks.