Abstract: With the rise of Internet finance, transaction environment has changed from offline counter to online platforms and the market of financial products has presented distinctive new features. Structured products have been more and more complex and developing rapidly, but there is a large risk behind their prosperity. Risk measurement and management are of crucial importance for the further development of structured product market. Studies have shown that psychological factors have an important impact on investors' beliefs and expectations. Moreover, transaction environment change can intensify investors' psychological biases and then lead them to irrational investment decisions and behaviors. This paper reviews the important literature related to demand and supply sides of structured products, individual psychological factors, transaction environment change, and risk measure theories and methods. Based on the existing research, it is proposed that further studies on the risk measurement of structured products on the Internet financial service platforms should take the transaction environment change and psychological factors into account, which helps to most effectively realize the risk assessment and management of the complex financial product market in the new Internet era.

Key words: psychological factors, transaction environment change, structured products, risk measurement