Risk Measurement, Analysis, and Prediction Methods for Online Financial Services

The analysis and research on the risk of online financial business is divided into four main areas; the construction of metrics, analysis and modeling, risk prediction, and risk monitoring and control. It mainly uses high-frequency data to update the dynamic factor model, converts the results to low-frequency data to derive the systematic risk indicators; based on the Markov interval transformation model, the unpredictable and uncertain mechanisms are used as stochastic variables to identify the characteristics of the risk changes to cope with the Internet financial risks. The study concludes that the Internet financial risk has a certain trend and periodicity, and the presented market is relatively stable; due to the close connection between Internet finance and traditional financial industry, the resonance effect can bring certain risk to the whole financial market, and it is still necessary to pay attention to the changing risk factors and take corresponding risk management measures.