There are several ways to deal with risks: transferring risks, controlling risks, retaining risks, decomposing risks and so on. Link to the following URL for reference.
In the process of world economic development, typical risk events are:
1995 bankruptcy of British Bahrain Bank;
200 1, the American Enron company closed down;
WorldCom scandal in 2002;
In 2004, Cao speculated in crude oil futures, with a huge loss of $550 million;
In 2007, the subprime mortgage crisis triggered by the bankruptcy of American subprime institutions and the forced closure of investment funds gradually spread, swept and ravaged the world, causing turmoil and recession in the global real economy. Global business circles, financial circles and governments all over the world re-examine the internal system and external environment of risk control, and put forward requirements for economic entities to comprehensively improve supervision.
Through the implementation of internal control and risk management, the management and business process of enterprises can be standardized, systematized and programmed, which can greatly reduce the exceptions of risks and improve the traditional management level of enterprises. It can improve the execution and enhance the control ability of enterprises; It can effectively prevent the occurrence of errors and fraud and realize trusted management.