A Study On Risk Management Of Fintech Companies

In recent years,Fintech(financial+technology)has increasingly developed.Fintech,raising the efficiency of financial institutions and improving people's quality of life,promotes the development of society.After 2015,China become one of the most developed countries in the world on Fintech.At the same time,Fintech has penetrated into various fields in the financial industry and created new business modes.However,with the rapid development of Fintech,new risks appeal.Firstly,we introduce the financial innovation theory,financial fragility theory and long tail theory,which provide the theoretical basis of studying Fintech risks.Secondly,we introduce the development history of Fintech,present situation of Fintech,and typical operating modes of Fintech,types of risks and a method of risk assesment-the Fuzzy Analytic Hierarchy Process(FAHP)in Fintech companies,based on which we set Ant Financial as an typical example of Fintech.By studying the potential risks from shareholders' relationship,business models,business characters and other aspects,We deeply analyze the internal risks and external risks of Ant Financial.Then we calculator the weight of these risks by FAHP and find that information technology risks and credit risks are among the important risks.Next we introduce the models of Ant Financial's risk management from three aspects: big data credit,AI and artificial risk management,and strict internal audit system.Finally,we give targeted countermeasures and suggestions on managing these risks.These suggestions are strengthening the management of technology and business,restricting the rights of shareholders,establishing relevant regulatory laws,and improving their own competitiveness,establishing an early warning mechanism and penetrating supervision.