Risk identification is the first step of risk management. It refers to identifying the changes of leading factors in time and analyzing the potential causes of risks through a series of preset methods before the occurrence of risk events.

Risk identification includes risk perception and risk analysis. First of all, risk perception is the basis of risk identification. Only by understanding the existence of risks can we further analyze and judge, find out the factors affecting risks and manage risks in time. Perceived risk is detected by examining all potential factors that may lead to risk.

Second, the risk assessment

Risk assessment refers to the process of quantitatively evaluating the impact and possibility of risks on the company after they are identified. That is, the probability and significance of evaluation.

Third, risk monitoring.

Risk monitoring refers to monitoring some quantifiable key risk indicators and unquantifiable risk factors after/after the occurrence of risks. Important results will be regularly submitted to the decision-making level in the form of risk monitoring reports, so as to formulate relevant policies in time and control the further development of risks. In the risk monitoring report, it should be noted that in addition to some conventional indicators, the old risk residues that are no longer affected by new changes should be cleaned up, and the new risks that need attention in the near future should be highlighted. Another meaning of risk monitoring refers to the continuous tracking of risk events with management strategies, and monitoring their implementation and results. In a word, risk monitoring and reporting is to meet the needs of different risk levels and different functional departments for risk understanding, so as to assist them in making industry and decision.

Fourth, risk control.

Risk control refers to the behavior of small loan companies to manage and control the risk factors after risk identification and risk assessment by adopting risk management strategies such as dispersion, hedging, transfer, evasion and compensation. Risk control should be based on all available data and information, aiming at reducing the adverse effects caused by risk events, taking corporate culture as the background and aiming at the strategic objectives of the whole company.