Development Status, Causes of Risks, and Risk Supervision Suggestions on Internet Finance in China

As a useful supplement to China’s financial system, the development of internet finance has promoted the innovation of financial model and injected strong vitality into the financial market. Internet finance provides customers with more convenient and fast financial services, effectively alleviates financial exclusion, and reduces information asymmetry. It is of great significance to promote the marketization of interest rate and the development of inclusive finance in China. However, internet financial risk events occur frequently, posing a serious challenge. Therefore, this research analyzes the causes of internet financial risks, and provides suggestions on internet financial risk supervision, so as to promote a healthy development of the internet financial industry in China.

Research on the Effectiveness of KMV Model in China's Bond Credit Rating Market

In recent years, China's bond market has experienced rapid development, but the pace of credit risk supervision has not kept up. Since 2014, the number of domestic credit bond defaults has increased. In 2016, there were 79 domestic default bonds, with a default amount of up to 40.3 billion Yuan. From the perspective of domestic bond market credit risk supervision and early warning mechanism, rating is not objective, and tracking is not timely also rating methods are backward. Therefore, with the development of big data and other technologies, it is urgent to study credit risk supervision methods suitable for the domestic bond market. On the basis of combing the development of domestic bond market and analyzing the current situation of domestic credit rating, this paper combines the results of theoretical research at home and abroad, the information available in the domestic market, big data mining and automation technology, based on the financial and stock exchange information of listed companies, combined with BS option pricing theory, constructs KMV model.

Duality CEO-Chairman and its relation with the effectiveness of the board control

The study focused on analyzing the duality CEO-Chairman and its relation on the effectiveness of the board control. A sample of 347 companies with annual sales volume greater than five million US dollars was selected; a questionnaire was provided in order to measure the effectiveness of the board control. To measure the duality CEO-Chairman secondary information was used, and verification was made about the existence of the duality. The effectiveness of the board was measured by an index obtained through the use of confirmatory factorial analysis. Statistical tests were performed, such as Student’s t-test for mean difference, Chi-square to measure the dependence and regression by simultaneous equations to answer the questions. As a result, it was found out that the duality CEO-Chairman is connected in a significant way with the performance of independent directors and risk supervision of the board. The results regarding the duality relationship CEO-Chairman and performance of independent directors are shown to be inverse, while with risk supervision it becomes direct. The obtained results theoretically contribute to the knowledge regarding the practices of good corporate governance.

Cybersecurity Risk Supervision

This paper highlights the emerging supervisory practices that contribute to effective cybersecurity risk supervision, with an emphasis on how these practices can be adopted by those agencies that are at an early stage of developing a supervisory approach to strengthen cyber resilience. Financial sector supervisory authorities the world over are working to establish and implement a framework for cyber risk supervision. Cyber risk often stems from malicious intent, and a successful cyber attack—unlike most other sources of risk—can shut down a supervised firm immediately and lead to systemwide disruptions and failures. The probability of attack has increased as financial systems have become more reliant on information and communication technologies and as threats have continued to evolve.

The Study of Inspection and Supervision for Overage Service Pressure Vessels in Petrochemical Plants

Overage service pressure vessels are widespread in China. These pressure vessels may be suffered from some forms of material deterioration and damage with an increasing possibility of failure. However, some of the potential damage mechanism couldn’t be found if the inspection strategies were carried out in according with traditional inspection regulations. Through identifying the damage mechanism of these pressure vessels, the risk evaluation would be carried out by use of RBI technology in company with the structure integrity assessment. The procedure of inspection for overage service pressure vessels was developed, and some of the reasonable inspection and testing requirements and basic principles also were proposed. The three levels evaluation methods of residual safe-service life for these pressure vessels were proposed. At the same time, the risk supervision method of these pressure vessels was established by use on the risk basic theory.