Risk management is a process of discovery, education and intervention. Risk management is a process of identifying, determining and measuring risks, and formulating, selecting and implementing risk treatment schemes. The risk management process includes risk identification, risk assessment, risk control and risk adjustment.

Risk identification is to identify and distinguish risks according to certain scientific methods; Risk assessment is to calculate the frequency of risk occurrence and estimate its harm degree; Risk control is to control and reduce risks economically and effectively; Risk adjustment is to check and evaluate the results of different risk control measures, so as to make appropriate adjustments to the original risk management system.

Risk management is a new management science that studies the law of risk occurrence and risk control technology. Refers to the process in which risk management units effectively control risks and properly handle losses through risk identification, risk assessment, risk control and risk adjustment management. As a new discipline, risk management has the functions of planning, organizing, coordinating, commanding and controlling in management.

Risk management process

Clear scope and clear goals. In order to determine the state scope of the management object and the goal to be achieved by management activities, it is necessary to analyze the target risk. Then adjust the target structure according to the potential risk threat, and finally establish a perfect risk management target system. Analyze the causes of risks. To identify risk types, we should carefully study the internal and external environment of capital operation according to the target requirements.

Find out the root cause of risk formation, and classify the risk types accordingly, so as to provide ideas for finding preventive measures. Judge the risk probability and risk intensity. Risk probability refers to the possibility that the risk actually occurs. Risk intensity refers to the influence degree of risk, that is, risk value. Risk and utility assessment. The work at this stage is mainly to determine the utility value of various capital operators in dealing with risks.

Risk avoidance design. Risk avoidance design is the core of risk management. It is mainly composed of early warning, prevention, control and emergency subsystem. The main function of the early warning system is to monitor the possible risk factors, especially the key factors with high risk value, find abnormal signs in time and sensitively, and accurately predict risks. Finally, sum up experience and improve the level.