What are the risks of online finance? What are the risks of Internet finance?

In a sense, the risks brought about by online finance can be roughly divided into two categories: technical risks caused by network information technology and economic risks caused by the characteristics of online financial services.

First of all, from the perspective of technological risks, the development of online finance makes the security of the financial industry more and more constrained by the development of information technology and corresponding security technology. First, if the development of information technology is difficult to adapt to the rapid expansion of the demand for networking in the financial industry, the operation of network finance cannot achieve the expected high efficiency, and problems such as operational difficulties, data loss, and even illegal access occur, it will bring security risks to the financial industry. Second, the choice of technology solutions objectively creates the risk of wrong technology choice, which is manifested in two aspects:

First, the selected technical system is not compatible with the customer's terminal software, which will reduce the efficiency of information transmission; Second, the selected technical solutions are quickly eliminated by technological innovation, and technological backwardness will bring huge economic losses.

Secondly, from the perspective of economic risks, online finance has exacerbated the potential risks of the financial industry at two levels: first, the emergence of online finance has promoted the development of mixed industry operation, financial innovation and global financial integration, which has actually increased the vulnerability of the financial system while improving the efficiency of financial operations and strengthening the integration of the financial industry; Second, because of the high efficiency and integration of online finance, once a crisis occurs, even a very small problem can easily trigger a chain reaction in the entire financial system through the network and spread rapidly.

To sum up, the economic risks of online finance are not fundamentally different from traditional finance, but because online finance is based on network information technology, this makes online finance broaden the connotation and manifestation of traditional financial risks. First of all, the security risks of the technical support system of online finance have become the basic risk of online finance. Secondly, online finance has a relatively special form of technical selection risk; Third, due to the fast and unrestricted time and space of network information transmission, network finance will amplify the occurrence and scope of traditional financial risks.

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Financial risk refers to the risks related to finance, such as financial market risk, financial product risk, financial institution risk, etc.

Online financial risks include not only the eight basic risks of credit risk, market risk (interest rate risk), exchange rate risk, liquidity risk, system risk, management risk, crime risk, national and regulatory risk in traditional finance, but also the specific risk of online finance.

1.Systemic (technical) risks.

2.Economic risk (online banking settlement and operational risk).

3.Cybercrime Risk.

4.Legal risk (hacking).

5.Cross-border risk.

The risks of Internet finance are:

1. Credit default risk;

2. Risk of maturity mismatch;

3. Lender of last resort risk;

4. Legal risks;

5. It increases the difficulty of the central bank to regulate and control money and credit;

6. The risk of misuse of personal credit information;

7. Information asymmetry and information transparency;

8. Technical risks.

[Legal basis].Article 9 of the Interim Measures for the Administration of Personal Loans.

The lender shall establish a reasonable control mechanism for the borrower's income and debt repayment ratio, reasonably determine the loan amount and term based on the borrower's income, liabilities, expenditure, loan purpose, guarantee and other factors, and control the borrower's repayment amount in each installment not to exceed its repayment ability.

Article 242.

If the person subject to enforcement fails to perform the obligations set forth in the legal document in accordance with the enforcement notice, the people's court has the right to inquire about the property of the person subject to enforcement, such as deposits, bonds, shares, and shares. The people's courts have the right to seize, freeze, transfer, or sell the property of the person subject to enforcement according to different circumstances.

1. Liquidity risk. Like traditional finance, the Internet also has a huge flow of funds, once there is a break in funds and it is impossible to trace the flow of funds, it will cause a liquidity crisis.

2. Credit risk. This is mainly caused by the failure of the two parties to the transaction to perform the agreement, because the Internet mainly relies on online processing, once there is asymmetry of data and information or the customer maliciously defaults on funds, there will be a risk of default.

3. Reputational risk. Some institutions will use "high returns" as bait in order to attract customers, but high returns also come with high risks, and if the risks are not truthfully disclosed or misleading consumers, there will be risks.

4. Risk of information leakage. Internet finance is accompanied by data such as customer information and transaction records, and some platforms of Dangyuantan do not protect customer privacy perfectly, and even steal and leak this information.

5. Technical security risks. Internet finance relies on Internet technology, and the Internet itself also has security problems such as system defects, vulnerabilities, viruses, and hacker attacks.

Internet financial risks can be divided into two categories: technical risks based on Internet information technology and business risks based on the characteristics of Internet financial services. Internet finance risks include:

security risk, technology choice risk, credit risk, liquidity risk, payment and settlement risk, etc.

Legal basis: Cybersecurity Law of the People's Republic of China

Article 8. The state internet information department is responsible for the overall planning and coordination of network security efforts and related oversight and management efforts. In accordance with the provisions of this Law and relevant laws and administrative regulations, the competent departments for telecommunications, public security departments, and other relevant organs are responsible for network security protection, oversight, and management efforts within the scope of their respective duties.

The network security protection and oversight and management duties of the relevant departments of the local people's government at the county level or above are to be determined in accordance with relevant state provisions.

New regulations on Internet insurance.

New regulations on Internet insurance: For consumers, Internet insurance that is not in the sales area can buy Internet insurance products and provide better services. For insurance companies, there are strict restrictions on which insurance can be sold online:

1. The product name must contain the word "Internet". 2. For products with 1 year or less of insurance, if you choose to pay in installments, the premium of each installment must be the same. 3. For products with 1 year or less of insurance, the predetermined surcharge rate cannot be higher than 35%, and the insurance rate for more than 1 year cannot exceed 60%.

15 Acts of Using the Internet to Commit Crimes.

15 types of crimes committed using the Internet are frauds.

1. Online lottery fraud2, online marriage and dating fraud3, online shopping fraud4, online dating fraud5, game equipment fraud such as upgrade fees6, online loan fraud7, online employment recruitment fraud. 8. Online lottery fraud. 9. Phishing scams.

10. Get-rich-quick fraud. 11. Online rental fraud. 12. MLM fraud.

13. Online number education fraud. 14. Private placement ** fraud. 15. Online adoption of a child scam.

[Legal basis].