Research On The Application Of Logistic Regression Model In Risk Control In Microfinance Enterprises

In this paper,the logistic regression model used in risk management,quantitative credit risk management,credit risk management,and risk management is taken as the main logical line of the article;Chuangkun Company is taken as the representative of the p2 p enterprise.Taking profit as the research basement,the paper studies the impact of applying the quantitative risk management tool-logistic regression model to the business value.The framework of this paper includes four parts: introduction and literature review,introduction of p2 p Company,historical changes in risk management and the impact of logistic regression model.First,this paper analyzes the challenges faced by p2 p companies in risk management which include credit risk,market risk,and operational risk;the analysis under the guide line of <Basel Accord 3> and <Enterprise Risk Management Framework>.Next,the paper focuses on the credit risk of many risks,and briefly describes the historical changes of credit risk management tools,which including expert analysis,quantitative scoring,and modern credit risk management.Then,the author pick up the logistic regression model through credit risk quantification tools as the tools,and builds a logistic regression model to measure the credit risk based on true data,after that the author analyzes the model performance.This performance analysis no longer goes deep into the model itself,but focus on the business profit which logistic model can improve.Finally,the paper further analyzes the neural network model which uses logit function as the output layer's activation function to quantify the performance.The article first introduced the environment and research methods faced by microfinance enterprises;then,on the level of risk management,credit risk management,and credit risk measurement models,the relevant literature was reviewed;followed by the introduction of p2 p company,which has general corporate organizational structure,business processes,and related products in microfinance enterprises;the fourth chapter of the article focuses on risk management and clarifies the measures that should be taken to achieve risk management;the fifth chapter of the article focuses on credit risk management and clarifies risk measurement tools that microfinance enterprises should be introduced at this stage;Chapter 6 of the article carries out a detailed development of the credit risk management tool-logical regression model,from the data collection,data cleaning,model building,model testing,model application value dimensions,elaborated the logistic regression model in the application of risk control in microfinance enterprises.