Question 2: What does risk control mean? Risk control means that risk managers take various threats and methods to eliminate or reduce the possibility of risk events or reduce the losses caused by risk events.
Methods of risk control
The four basic methods of risk control are: risk avoidance, loss control, risk transfer and risk retention.
Question 3: What is risk management? Risk management is a process in which all economic and social units optimize and combine various risk management technologies on the basis of identifying, estimating and evaluating risks in their production and life, effectively control risks, properly handle the results caused by risks, and achieve maximum safety at the lowest cost. With the development of society and the progress of science and technology, there are more and more risk factors in real life, and both enterprises and families are increasingly aware of the necessity and urgency of risk management. People have thought of various methods to deal with risks, but no matter which method is adopted, a basic principle of risk management is: to obtain the greatest protection at the lowest cost. There are four ways to deal with risks: avoiding risks, preventing risks, maintaining risks and transferring risks. (1) Avoid risks. Risk avoidance refers to the possibility of actively avoiding losses. If you consider the danger of drowning, don't go swimming. Although avoiding risks can fundamentally eliminate hidden dangers, this method obviously has great limitations, because not all risks can or should be avoided. For example, accidental personal injury, no matter how careful, this risk can never be completely eliminated. Another example is refusing to take the bus for fear of accidents. Although the risk of accidents can be completely avoided, it will bring great inconvenience to daily life and is actually not feasible. (2) Prevent risks. Risk prevention refers to taking preventive measures to reduce the possibility and degree of loss. Building water conservancy projects and building shelterbelts are typical examples. Risk prevention involves the comparison between current cost and potential loss: if the potential loss is far greater than the cost of taking preventive measures, risk prevention measures should be taken. Taking the construction of dams as an example, although the construction cost is high, it is insignificant compared with the huge disaster caused by floods. (3) Retained risk. Self-retention risk refers to taking risks on your own initiative irrationally or rationally. Irrational retention risk refers to exposure to risk because of fluky psychology or underestimation of potential losses; Rational risk retention refers to the correct analysis of potential losses within the tolerable range, and it is more economical to bear all or part of the risks yourself than to buy insurance. Retention risk is generally suitable for dealing with risks with low probability of occurrence and low degree of loss. (4) Transfer risks. Transferring risks refers to transferring all or part of the risks you face to another party through some arrangement. It is the most widely used and effective risk management method to obtain protection by transferring risks, and insurance is one of them. Risk management and insurance are closely related in theory and practice. Theoretically speaking, insurance comes first, and then risk management. The theory of insurance essence in insurance science is an important part of the theoretical basis of risk management, and the development of risk management science benefits from the in-depth study of insurance to a great extent. At the same time, the later development of risk management is also promoting the development of insurance theory and practice. In practice, on the one hand, insurance is one of the most important and commonly used methods in risk management; On the other hand, by improving the level of risk identification, risks can be evaluated more accurately, and the development of risk management has played an important role in promoting the improvement of insurance technology. The basic goal of risk management is to obtain the maximum safety benefit with the minimum economic cost, that is, risk management is to disperse, transfer and eliminate risks to the maximum extent with the minimum expenditure, so as to achieve the basic purpose of safeguarding people's economic interests and social stability. This can be divided into the following three situations: first, the risk management goal before the loss occurs-to avoid or reduce the probability of risk accidents; Second, the goal of risk management in the event of loss is to control the expansion and spread of risk accidents and minimize losses; Third, the risk management target after the loss-trying to restore the loss target to the state before the loss. The risk management process includes the following basic links: (1) risk identification; (2) Risk assessment; (3) Selection of risk management methods; (4) Implementing risk management decisions; (5) Risk management effect evaluation. (insurance knowledge reader)
Question 4: What does 4:CF mean in risk management?
Question 5: What is the basic goal of risk management? The basic goal of risk management is to obtain the most secure management activities at the lowest cost.
The objectives of risk management include the following aspects:
1. Survival and development of enterprises, organizations and members. The basic goal of risk management is that enterprises and organizations can survive in the face of risks and accidents, and the risk management scheme should enable enterprises and organizations to achieve sustainable development in the face of losses. Achieving this goal means that economic units, families, individuals and even society can avoid disaster losses through various efforts of risk management. Therefore, maintaining the survival of the organization and its members is the primary goal of post-loss risk management.
2. Ensure the normal operation of all activities of the organization. The occurrence of risk accidents will bring people different degrees of losses and injuries, and then affect or break the normal state of the organization and the normal life order of people, and may even paralyze the organization. The implementation of risk management can help organizations to resume normal operation quickly and help people move from disorder to order as soon as possible. This goal requires enterprises to choose an appropriate balance between loss control insurance and other risk management tools in order to achieve effective risk management performance.
3. Realize the stable income of enterprises and organizations as soon as possible. Enterprises and economic units can resume production and operation in time through economic compensation after facing risk accidents, and ensure the stability of enterprise operation as much as possible with risk management; On the other hand, it can provide other help for enterprises to recover to the level before the loss as soon as possible, and urge enterprises to realize the plan of sustainable growth as soon as possible.
4. Reduce anxiety and fear and provide a sense of security. The occurrence of risk accidents will not only lead to material losses and personal injuries, but also bring people serious anxiety and fear. The implementation of risk management can reduce people's psychological anxiety, enhance people's sense of security, create a relaxed production and living environment, or relieve people's psychological pressure caused by accidents through psychological counseling. Therefore, it is also an important goal of risk management.
5. Maximize the value of the enterprise or organization by minimizing the risk cost. Generally speaking, the existence of risk leads to the decrease of enterprise value, which constitutes the risk cost. Pure risk cost includes: (1) expected loss cost; (2) Cost of loss control; (3) the loss of financing cost; (4) Internal risk control costs. Through comprehensive and systematic risk management, the risk cost of enterprises can be reduced, and then the occurrence of disaster losses and cash outflow of enterprises can be reduced, and the value of enterprises can be maximized by minimizing the risk cost. This is a very important goal of modern enterprise risk management.
Question 6: What is risk and risk management? Risk management refers to the management process of how to minimize the risk in an environment with certain risks.
Risk management refers to the management method of recognizing, measuring and analyzing risks, choosing the most effective way, actively, purposefully and planned dealing with dangerous risks, and striving to obtain the maximum security at the lowest cost.
The significance is that risk management can maintain the stability of enterprise production and operation and family life, and reduce the fear and anxiety of families and enterprises about risks. Avoid the fluctuation of social economic units and family units, reduce the waste of social resources, and improve the distribution and utilization of social resources.
Question 7: What does total risk management include? (1) internal environment
The management establishes the concept of risk and determines the risk tolerance. The core of all enterprises is people (their personal character, including honesty, moral values and ability) and the environment in which they operate. The internal environment lays the foundation for the people in the subject to deal with risks and start to control them.
(2) Goal setting
Goals must be set before management can identify potential problems that affect the achievement of goals. Enterprise risk management ensures that the management adopts appropriate procedures to set goals, and ensures that the selected goals support and relate to the main body's mission and adapt to its risk ability.
(3) Event identification
It is necessary to identify potential issues that may affect the theme, including those that indicate risks and opportunities, and those that may have both. Opportunities can be traced back to the strategy or goal-setting process of management.
(4) Risk assessment
It is necessary to analyze the identified risks to determine the basis of management. Risks are associated with targets that may be affected. It is necessary to evaluate both inherent risks and residual risks, and the possibility and influence of risks should be considered in the evaluation.
(5) Risk response
Employees identify and evaluate possible risk response measures, including avoiding, assuming, reducing and sharing risks. The management chooses a series of measures to adapt the risk to the risk tolerance and risk tolerance of the subjects.
(6) Control activities
Formulate and implement policies and procedures to ensure that the risk coping strategies selected by the management authorities are effectively implemented.
(7) Information and communication
Subjects at all levels need information to identify, evaluate and deal with risks. Effective communication in a broad sense includes downward, parallel and upward flow of information in the subject.
(8) Monitoring
Monitor the risk management of the whole enterprise and revise it when necessary. This method can dynamically reflect the risk management situation and make it change according to the requirements of conditions. Monitoring is accomplished through continuous management activities, independent evaluation of enterprise risk management or a combination of the two. The third dimension (horizontal dimension) is the main unit, including four levels: group, department, business unit and branch. In the books related to the qualification certification of Chinese banking practitioners, the elements of total risk management are expressed as 1, internal environment and target setting 2, event identification and risk assessment 3, risk reflection and control activities 4, information and communication and monitoring.
Question 8: What is the difference between risk control and risk management? Risk control is a means of risk management.
Risk management = risk identification+risk control+risk monitoring.
Risk management refers to the management process of how to minimize the possible adverse effects of risks in projects or enterprises with certain risks.
Simply put:
1. Risk identification is to find, analyze and evaluate risks, that is, to know where there are risks, what risks there are and how serious the risks are.
2. Risk control is to control the risk within an acceptable level, and there are four means:
Risk acceptance: this kind of risk is within the range that the enterprise can bear, and it does not need to be dealt with for the time being, but it needs attention and monitoring.
Risk reduction: reduce risk factors through various means and reduce risks to the expected level.
Risk avoidance: a special way to deal with risks, that is, the factors that cause risks are completely eliminated, and the risks are also eliminated.
Risk transfer: the loss of risk is transferred by purchasing insurance and transferring it to suppliers, but the responsibility of risk management cannot be transferred.
3. Risk monitoring is the use of quantitative key risk indicators, statistics and analysis of risk development trends, risk prediction and early warning.
Question 9: What does the last mile of risk management mean? With the further development of inventory management and price risk management of entity enterprises, basis pricing has been widely used in bulk commodities, and basis arbitrage trading has also been carried out in the business of spot subsidiaries of futures companies. The market demand for basis risk management tools and basis arbitrage trading tools is more and more urgent, and it is urgent to launch risk management trading tools with basis as the target.
The demand of enterprise hedging for basis tools
Basis refers to the difference between the spot price of a commodity and the futures price of the commodity in the futures market, that is, basis = spot price-futures price. Basis mainly reflects the transportation cost and holding cost between spot and futures market, and it also contains financial attributes in reality. Therefore, influenced by financial attributes and speculative factors, the basis fluctuates greatly (as shown below). The positive market base is negative, and the monthly contract spread is based on the holding cost; The basis of reverse market is positive, the spot market is empty, and the recent contract price is higher than the forward contract price.
The picture shows the trend of soybean meal basis difference in an oil and fat enterprise.
As can be seen from the figure, the basis can be positive, negative or zero, and the fluctuation range is 700-200 yuan/ton, with a large fluctuation range.
The change of basis has a great influence on the effect of hedging. Hedging is to replace spot price risk with basis risk. Ideally, an enterprise can achieve complete hedging without changing the basis during the whole hedging process. However, in reality, the basis is affected by the current price changes and fluctuates greatly, which requires enterprises to judge the basis when hedging, so as to avoid the hedging risk caused by the price fluctuation of the basis. If you are selling hedging, you should choose the time when the basis will strengthen in the future; If you are buying hedging, you should choose the time when the basis will weaken in the future.
In the actual operation process, it is more important to choose the futures price because the timing of choosing the futures price and the basis price is difficult to agree, so it is necessary to use the basis price tool to manage and avoid the adverse risks caused by the change of the basis price.
The following table shows the hedging effect after the introduction of basis tools.
Demand of buyers and sellers for basic tools of premium promotion
At present, basis pricing is becoming more and more common in industries such as meal, oil, energy, chemical industry and non-ferrous metals, which is attractive to both buyers and sellers. As far as the basis seller is concerned, the basis pricing is to lock in the processing profit; The second is risk transfer; The third is to arrange the processing and sales progress reasonably. For basis buyers, basis pricing is to arrange the procurement schedule reasonably and manage the inventory; The second is to have the pricing initiative.
However, with the wide application of basis pricing in trade pricing, there are also some problems, such as the basis quotation is discontinuous and opaque, the basis fluctuation is large, the basis is too high for buyers to find, and the basis is too low for sellers to quote. If basis pricing is widely used in trade pricing, an open, just and fair basis pricing market is needed to meet the different needs of both parties.
The following table shows the premium trading options after the introduction of the basis tool.
Demand for basis tools in basis arbitrage trading
As the main business of futures risk management subsidiary, basis trading needs to establish the current basis database on the one hand; On the other hand, it is necessary to establish spot procurement and sales channels. When making multiple basis, it is easier to short futures contracts by buying spot, but when shorting basis, it is necessary to find a suitable spot buyer and make multiple futures by selling spot. Due to the factors of spot talents and spot channels, basis trading has been unable to be done on a large scale. In addition, spot transaction fraud and breach of contract frequently occur, resulting in huge losses for some risk management subsidiaries.
At the same time, in the spot arbitrage of stock index, it is difficult to copy the spot index. At present, the trading of stock index futures is limited, which makes this low-risk return investment face many inconveniences. If there is a stock index spot arbitrage trading tool, the above problems will be solved.
From the above analysis, we can see that there is an urgent need for risk management tools and investment tools based on basis difference, and it is very necessary to launch basis difference tools, which will open the "last mile" of price risk management.
Feasibility of Developing Basis Tools in Futures Exchange
After more than 20 years' development, China futures market has become more and more perfect and standardized. Domestic futures exchanges are more mature and perfect in contract design, risk control and information technology, and have also accumulated rich spot market resources, providing a good soft and hard environment for the design and launch of basis tools. Let's make a simple design of commodity-based tools represented by various exchanges.
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The table shows the design of the basic tools for each exchange.
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Question 10: What is risk management? Can you give me an example? [Edit this paragraph] 1. Definition of risk management
Definition: Risk management, also known as crisis management, refers to the management process of how to minimize risks in an environment where risks are certain. It includes risk measurement, assessment and emergency strategy. The ideal risk management is a series of prioritization processes, which give priority to the things that can cause the greatest losses and the most likely to happen, and postpone the things with relatively low risks.
But in reality, the optimization process is often difficult to decide, because the risk and the possibility of occurrence are usually inconsistent, so we must weigh the ratio of the two to make the most appropriate decision.
Risk management also faces the problem of effective use of resources. This involves the factor of opportunity cost. Using resources for risk management may reduce the resources available for incentive activities; The ideal risk management is to resolve the biggest crisis as much as possible with the least resources.
"Risk management" is a compulsory subject for western business executives who invested in China in the 1960s and 1990s. At that time, "risk management" was added to many MBA courses.
Risk management (risk management)
The process of weighing the benefits and costs of reducing risks and deciding what measures to take.
The process of determining the reduced cost-benefit trade-off scheme and deciding the action plan (including deciding not to take any action) becomes risk management.
[Edit this paragraph] 2. Steps of risk management
For modern enterprises, risk management is to identify, predict, measure and choose effective means, reduce costs as much as possible, and deal with risks in a planned way, so as to obtain economic guarantee for safe production of enterprises. This requires enterprises to identify possible risks in the process of production and operation, predict the negative impact of various risks on resources and production and operation, and make production sustainable. It can be seen that risk identification, risk prediction and risk treatment are the main steps of enterprise risk management.
2. 1 risk identification
Risk identification is the first step of risk management. Only on the basis of comprehensive understanding of various risks can we predict the possible harm caused by risks and choose effective means to deal with them.
There are many methods of risk identification, and the common methods are:
2. 1. 1◆ Production process analysis method
Production process analysis is a comprehensive analysis of the whole production and operation process of an enterprise, which analyzes the possible risks in each link item by item and finds out various potential risk factors. Production process analysis method can be divided into risk enumeration method and flow chart method.
1. Risk enumeration method means that the risk management department lists all risks of each production counterattack according to the production process of the enterprise.
2. Flowchart method means that the enterprise risk management department systematizes, serializes and makes flowcharts of all links in the whole enterprise production process in order to find out the risks faced by the enterprise.
2. 1.2◆ financial statement analysis method
The financial statement analysis method is to identify and discover the risks faced by the existing assets and liabilities of an enterprise by analyzing its balance sheet, income statement, business report and other relevant materials.
2. 1.3 insurance survey method
There are two ways to identify risks through insurance investigation:
Through the insurance list, enterprises can choose the insurance that suits their needs according to the insurance company's insurance list or special insurance publications. This method only identifies insurable risks, but can do nothing about uninsurable risks.
Entrust an insurer or an insurance consulting service agency to investigate and design the risk management of this enterprise, and find out the risks existing in various properties and liabilities.
2.2 Risk prediction
In fact, risk prediction is to estimate and measure risks. Risk managers use scientific methods to systematically analyze and study their statistical data, risk information and the nature of risks, so as to determine the frequency and intensity of various risks and provide a basis for choosing appropriate risk treatment methods. Risk prediction generally includes the following two aspects:
2.2. 1 Probability of predicting risks: Through data accumulation and observation, the regularity of losses is found. For a simple example, if there is a fire in ten of the ten thousand houses within a period of time, the probability of the risk is11000. Therefore, it is mainly to prevent high probability risks.
2.2.2 Predicting the risk intensity: assuming that the risk occurs, it will lead to the direct loss and accidental loss of the enterprise ... >>