Risk management 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.
Risk identification, risk prediction and risk treatment are the main steps of enterprise risk management.
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. The risk enumeration method refers to that the risk management department lists all risks in each production link 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, the enterprise can choose the insurance suitable for the enterprise 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 insurers or insurance consulting services to investigate and design the risk management of enterprises, and find out the risks existing in various properties and liabilities.
risk profile
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 intensity of risks: assuming that risks occur, it will lead to direct losses and indirect losses of enterprises. It is necessary to focus on preventing risks that are easy to cause direct losses and have a large scale and degree of losses.
Risk management (risk control)
Common methods of risk management are:
2.3. 1 risk aversion: passive risk aversion. For example, houses can be sold to avoid fires, and land transportation can be used to avoid aviation accidents. Because of the following problems, it is generally not used.
It may bring additional risks. For example, air transport to land transport, although avoiding aviation accidents, faces the risk of accidents in land transport.
Will affect the realization of business objectives. For example, in order to avoid production accidents and stop production, the profit target of enterprises can not be achieved.
2.3.2 Risk prevention: Take measures to eliminate or reduce the factors leading to risks. For example, in order to prevent the warehouse from being flooded, adding flood gates and heightening flood levees can greatly reduce the losses caused by floods.
2.3.3 Self-insurance risk: The enterprise bears its own risk. These methods are:
Small losses are included in the production and operation costs, and when losses occur, they are made up by enterprise income.
Establish an unexpected loss fund for high-frequency and high-intensity risks, and use it to compensate when losses occur. The problem is that it squeezes the funds of enterprises and reduces the efficiency of capital use.
For larger enterprises, establish professional self-insurance companies.
2.3.4 Risk transfer: before the risk occurs, the risk is transferred by means of sale, transfer and insurance.
Internal control refers to the mutually restrictive business organization form and division of responsibilities system established by economic units and organizations in economic activities. The purpose of internal control is to improve management level and economic benefits. It arises from the need of strengthening economic management, and develops and perfects with the development of economy. The earliest control mainly focused on protecting the safety and integrity of property and the correctness and reliability of accounting information, focusing on managing money and goods, strict procedures and strengthening examination. With the development of commodity economy and the expansion of production scale, economic activities have become increasingly complex and gradually developed into a modern internal control system.
Types of internal control
The internal control system focuses on strict accounting management, designing a reasonable and effective organizational structure and post division, implementing standardized business processing procedures, and defining post responsibilities. According to its scope of action, it can be divided into the following two aspects:
1, internal accounting control
The scope of internal accounting control is directly related to all aspects of accounting matters, which mainly refers to various accounting treatment procedures and control measures formulated by the accounting department to prevent illegal acts such as embezzlement of property and protect the safety of enterprise property. For example, a third party that has no right to manage cash and issue checks prepares a bank deposit reconciliation statement every month, which is an internal accounting control. Through this control, the reliability of accounting business, accounting records and accounting statements of cash transactions can be improved.
2. Internal management control
The scope of internal management control involves all departments, levels and links of enterprise production, technology, operation and management. Its purpose is to improve the management level of enterprises and ensure the implementation of business objectives and related policies. For example, personnel management and technical management within enterprise units belong to internal management control.