Risk Assessment And Prevention Strategy Of Equity-based Crowdfunding Based On Risk-matrix Method

Since the outbreak of the financial crisis,the global financial system has been deeply affected.With the popularization and deepening of the Internet Finance,many financial models have come into sight,and equity-based crowdfunding has emerged.Enterprise with financing needs publishes project through the Internet platform Investors obtain a small portion of equity and investment income from companies by investing.Equity-based crowdfunding is mainly targeted at serving small and micro enterprises.Small and micro enterprises are small in scale and they have weak survivability,limited development funds and high risks.Only a small number of enterprises can develop and grow.At the same time,equity-based crowdfunding attracts most of the individual investors.These investors have different levels of capital strength and risk preference.How to gain investors' trust is another challenge faced by equity-based crowdfunding.The development of Internet Finance is relatively unbalanced,and most areas have entered a stage of strong supervision and strict regulation.Thw equity-based crowdfunding has entering the Chinese market since 2011 as an emerging model of Internet Finance and lacks certain exploration and innovation opportunities,there are still some defects in the business model and supervision,there is also a series of chaos in the development,facing a lot of risks.Based on the realistic background,this paper analyzes the Internet Crowdfunding Industry Report from 2014 to 2017,combined with the environment of China's equity-based crowdfunding development.First of all,According to the project financing process,a detailed analysis of the possible risks of project operation was conducted.Secondly,for the existing and potential risk characteristics,based on the original risk matrix,we will improve the risk matrix and build a risk matrix that meets the risk characteristics of equity-basedcrowdfunding.We will quantitatively analyze various risk factors of project operations and judge the operation of the project.So as to identify the risk factors that should be considered.Finally,combined with the previous qualitative analysis and quantitative assessment,the risk assessment results were obtained and corresponding risk prevention countermeasures were proposed.Quantitative analysis of various risk factors of the project's operation,determine the degree of impact on the success or failure of the project to find out the risk factors that should be considered seriously.Finally,combined with the previous qualitative analysis and quantitative assessment,we obtained the risk assessment results and put forward the risk prevention strategies...