Case Study On Financial Risk Control Of Baocai P2P Network Loan Platform

As an emerging Internet financial model,P2 P network lending is characterized by its unique transaction convenience,flexible deadlines,and high returns.After a short period of silence,it has rapidly and savagely expanded.Due to the current imperfect domestic Internet financial industry regulatory system,laws and regulations are not Perfection,many platforms have gone bankrupt,and the P2 P online lending platform has exposed many financial problems while growing wildly.As the P2 P online loan platform of Beijing Zhonglian Venture Capital E-Commerce Co.,Ltd.,Baocai.com has been popular among investors since its launch in 2013.It has solved many difficult problems for small and medium-sized enterprises and individuals.The issue of overdue projects has also been controversial.By understanding the background,products and operation mode of P2 P online lending platform,and combining the main financial risks of P2 P online lending platform,this paper has identified and analyzed the financial risks of Baocai.com and provided financial risk control for the analysis results.some advices.Through research,this paper divides the financial risk points of P2 P online lending platform into four aspects: capital risk,liquidity risk,asset quality risk and profit risk.The analysis shows that the influencing factor is insufficient risk reserve ratio.The leverage of the paid-in capital is too large,the profit model is unreasonable,and the overdue rate is too high.Then,through the analytic hierarchy process,the factors affecting financial risk are evaluated separately.According to the evaluation results,this paper puts forward the suggestions for financial risk control of Baocai.com: improve the information review system,strengthen the loan process,and adhere to the principle of “small amount of dispersion”.Guarantee cooperation to transfer risks,enhance the awareness of platform employees' risk management,and strengthen internal auditing.