Risk control means that risk managers take various measures and methods to eliminate or reduce the possibility of risk events, or risk controllers reduce the losses caused by risk events.

There are always some things that cannot be controlled, and risks always exist. As a manager, he will take various measures to reduce the possibility of risk events, or control the possible losses within a certain range to avoid unbearable losses when risk events occur. The four basic methods of risk control are: risk avoidance, loss control, risk transfer and risk retention.

Loss control is not to give up risk, but to make plans and take measures to reduce the possibility of loss or actual loss. The stage of control includes three stages: before, during and after. The purpose of pre-control is mainly to reduce the probability of loss, and the control during and after the event is mainly to reduce the actual loss.

Risk retention means taking risks. In other words, if a loss occurs, the economic entity will pay it with any funds available at that time. Risk retention includes unplanned retention and planned self-protection.

Save it without a plan. Refers to the payment from the income after the risk loss occurs, that is, no financial arrangements are made before the loss occurs. When the economic subject is not aware of the risk and thinks that the loss will not happen, or when the maximum possible loss related to the risk is obviously underestimated, it will take unplanned reservation to bear the risk. Generally speaking, there is no need to use capital reserve carefully, because if the actual total loss is much greater than the expected loss, it will cause difficulties in capital turnover.

Self-protection in a planned way. It means that before the possible loss occurs, all kinds of financial arrangements are made to ensure that the loss can be compensated in time. Planned self-insurance is mainly realized by establishing risk reserve.