risk factors: the conditions or potential causes that generate and induce risks, and the direct causes of losses. The manifestations of risk factors in different fields are different. According to their nature, they can be divided into physical risk factors, moral risk factors and psychological risk factors.

risk accident: it is an accidental event that causes loss of life and property, and it is the medium that leads to loss.

risk loss: refers to the abnormal and unexpected reduction of economic value, usually measured in monetary units. And all the above conditions must be met before it can be called a loss.

what are the basic elements of risk

risk consists of three basic elements: risk factors, risk accidents and losses.

1. Risk factors

Risk factors refer to the reasons and conditions that cause or increase the chance of risk accidents or expand the loss range. Generally, according to the nature of risk factors, it can be divided into three types: substantive risk factors, moral risk factors and psychological risk factors.

Physical risk factors, also known as physical risk factors, are tangible factors that can directly affect the physical functions of things.

Moral hazard factors are intangible factors related to people's moral cultivation, that is, the reasons or conditions that lead to the destruction of social wealth or personal injury or death due to personal dishonesty, dishonesty or improper attempts to promote risk accidents.

Psychological risk factors are intangible factors related to people's psychological state, also known as discipline risk factors. It is due to people's subjective negligence or negligence, which increases the chances of risk accidents or expands the degree of losses.

among the above three risk factors, moral risk factors and psychological risk factors are related to human behavior, so they are classified as intangible risk factors or man-made risk factors.

2. Risk accidents

Risk accidents refer to accidental events that cause loss of life and property.

3. Loss

Loss refers to unintentional, unexpected and unplanned reduction of economic value.

risk is a unity composed of risk factors, risk accidents and losses. The relationship among them is as follows:

(1) Risk factors refer to the conditions that cause or increase the chance of occurrence of risk accidents or expand the loss range, and are the potential reasons for the occurrence of risk accidents;

(2) Risk accident is an accidental event that causes loss of life and property, a direct or external cause of loss, and a medium of loss;

(3) Loss refers to unintentional, unexpected and unplanned reduction of economic value. Therefore, the occurrence of risk accidents will cause losses.

the concept of three elements of risk and the relationship among them

1. the 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 with certain risks. It includes risk measurement, assessment and contingency strategies. The ideal risk management is a series of processes of prioritizing, so that the things that can cause the greatest loss and the most likely to happen are given priority, while the things with relatively low risk are postponed.

But in reality, the optimization process is often difficult to decide, because the risk and the possibility of occurrence are usually inconsistent, so we should weigh the proportion of the two in order to make the most appropriate decision.

Risk management also faces the problem of effective resource utilization. This involves the factor of opportunity cost. Using resources for risk management may reduce the resources that can be used for rewarding activities; The ideal risk management is to spend the least resources to resolve the biggest crisis as much as possible.

"Risk management" was a compulsory subject for executives who went to China for investment by western business circles in 199s. At that time, many MBA courses added extra links of "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 trade-off of reduced cost-benefit and deciding the action plan (including deciding not to take any action) becomes risk management.

2. Each step of risk management

For modern enterprises, risk management is to identify, predict, measure and choose effective means to 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, and predict the negative impact of various risks on resources and production and operation, so that production can continue. 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 a comprehensive understanding of various risks can we predict the possible harm caused by risks and choose effective means to deal with risks.

there are many methods to identify risks, and the common methods are:

2.1.1◆ production process analysis

production process analysis is to comprehensively analyze the whole production and operation process of an enterprise, analyze the risks that may be encountered in each link one by one, and find 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 of each production counterattack according to the production process of the enterprise.

2. Flowchart method means that the enterprise risk management department systematizes and sequences all the links in the whole enterprise production process and makes a flowchart, so as to facilitate the discovery of the risks faced by the enterprise.

2.1.2◆ financial statement analysis method

financial statement analysis method is to identify and discover the risks faced by an enterprise's existing property and liabilities 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 by using insurance survey method:

According to the list of insurance types of insurance companies or specialized insurance publications, enterprises can choose the insurance types suitable for their own needs. 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

Risk prediction is actually 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 selecting appropriate risk treatment methods. Risk prediction generally includes the following two aspects:

2.2.1 Probability of risk prediction: through data accumulation and observation, the regularity of losses is found. A simple example: if there is a fire in 1 out of 1, houses in a period, the probability of the risk is 1 in 1,. Therefore, the risk with high probability is mainly prevented.

2.2.2 forecast the intensity of risks: assuming that risks occur, it will lead to direct losses and indirect losses of the enterprise. It is easy to cause direct losses and losses ... > >

What are the elements of risk?

Risk elements are composed of risk factors, risk accidents and losses. Risk factors increase or produce risk accidents, and risk accidents cause losses. The series connection of the three constitutes the risk formation mechanism.

risk factors are the conditions that promote and increase the frequency or severity of losses, which can be divided into tangible risk factors and intangible risk factors. Tangible risk factors are material risk factors that directly affect the physical function of things. Intangible risk factors are intangible factors, such as culture, customs and attitude towards life, which affect the possibility of loss and the degree of damage. It can be further divided into moral risk factors and psychological risk factors.

Risk accident is the direct or external cause of loss, and it is the medium to turn the possibility of loss caused by risk into reality.

loss is unintentional, unexpected and unplanned reduction or disappearance of economic value. Loss management refers to consciously taking actions to prevent or reduce the occurrence of disasters and accidents and the resulting economic and social losses. Its goals are divided into two types: first, before the loss occurs, completely eliminate the root causes of the loss and minimize the frequency of the loss; The second is to try to reduce the degree of loss after the loss occurs. Risk components: cause-cause-produce.

three elements of risk management and their contents

three elements of financial risk?

1. Risk factors: the relevant entities engaged in financial activities;

2. Risk accident: some factors change unexpectedly (unplanned, unexpected and unintentional);

3. possibility of loss: possibility of economic loss.

management of financial risks

internal control and comprehensive risk management

1. internal control framework: control environment, risk assessment, control activities, information and communication, supervision;

2. Comprehensive risk management framework

(1) Enterprise objectives: strategic objectives, business objectives, reporting objectives and compliance objectives;

(2) elements of risk management: internal environment, target setting, event identification, risk assessment, risk countermeasures, control activities, information and communication, and monitoring;

(3) enterprise level: the whole enterprise, various functional departments, various business lines and subordinate subsidiaries.

2. Process of total risk management: risk identification, assessment, classification, control, monitoring and reporting.

3. Credit risk management

1. Mechanism management: loan separation mechanism, authorization management mechanism and limit management mechanism

2. Process management

(1) Prior management of "5c": repayment capacity, capital, character, collateral and operating environment (conditions).

"3c": cash flow (cash flow), management (control) and business continuity (continuity)

(2) in-process management

(3) afterwards management

(4) market risk management

1. interest rate risk management methods

(1) select favorable interest rates;

(2) adjust the loan period;

(3) gap management;

(4) duration management;

(5) trading with interest rate derivatives.

2. methods of exchange rate risk management

(1) selecting favorable currencies;

(2) Advance or postpone the receipt and payment of foreign currency;

(3) structural hedging;

(4) doing forward foreign exchange transactions;

(5) trading currency derivatives.

3. methods of investment risk management

(1) stock investment: buying up and selling down, diversifying investment, buying funds, stock index futures or options;

(2) Investment in financial derivatives: strengthen system construction, manage the quota, hedge and hedge the risk exposure.

5. Operational risk management

1. System management

2. Information system management

3. Process management

4. Staff management

5. Risk transfer

6. Liquidity risk management:

1. Maintain liquidity of assets

2. Maintain liquidity of liabilities

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VII. Management of legal risk and compliance risk

1. Strengthening cultural construction

2. Strengthening organizational and institutional construction

3. Strengthening human resource management

4. Strengthening process management

8. National risk management

1. National management methods

2. Enterprise management methods

9. Reputation risk.

according to the nature

1. Pure risk: Pure risk refers to the risk that only the opportunity is lost and there is no possibility of profit. For example, the fire risk faced by house owners and the collision risk faced by car owners, etc., when a fire collision accident occurs, they will suffer economic losses.

2. Speculative risk: Compared with pure risk, speculative risk refers to the risk that there are both lost opportunities and possible gains. There are generally three consequences of speculative risk: first, there is no loss; Second, there are losses; The third is profit. For example, when buying and selling stocks in the stock market, there are three consequences: making money, losing money, and not losing money, so it belongs to speculative risk.

according to the target

1. Property risk: Property risk refers to the risk of damage, loss or devaluation of all tangible property and the risk of economic or monetary loss. For example, factories, machinery and equipment, finished products, furniture, etc. will suffer from fire, earthquake, explosion and other risks; During the voyage, ships may suffer from risks such as sinking, collision and grounding.

property losses usually include direct losses and indirect losses of property.

2. Personal risk: Personal risk refers to the risk of disability, death, loss of working ability and increased medical expenses caused by guidance. For example, people will die prematurely, be disabled, lose their ability to work or be helpless in old age due to physiological laws such as birth, old age, illness and death and natural, political and military reasons.

there are generally two kinds of losses caused by personal risks: one is the loss of income ability; One is the loss of extra expenses.

3. Liability risk: Liability risk refers to the risk of civil legal liability according to law, contract or morality due to the negligence or negligent behavior of individuals or groups, which causes property loss or personal injury to others.

4. Credit risk: Credit risk refers to the risk that the obligee and obligor suffer economic losses due to one party's breach of contract or violation of law in economic communication. For example, in import and export trade, the exporter (or importer) will suffer economic losses because the importer (or exporter) fails to perform the contract.

According to the behavior

1. Specific risk: the risk that has a causal relationship with a specific person, that is, the risk caused by a specific person, and the loss only involves a specific individual. Such as fire, explosion, theft, and legal liability for property loss or personal injury of others all belong to this category.

2. Basic risk: the risk that its damage will spread to society. The causes and effects of basic risks are not related to specific people, at least the risks that individuals can't stop. Risks related to society or politics and risks related to natural disasters are basic risks. Such as earthquakes, floods, tsunamis and economic recession, etc.

according to the environment

1. Static risk: Static risk refers to the risk of loss or damage caused by irregular changes in natural forces or people's negligent behavior under normal social and economic conditions. Such as lightning, earthquake, frost damage, storm and other natural causes of loss or damage; Loss or damage caused by fire, explosion, accidental injury, etc.

2. dynamic risk: dynamic risk refers to the risk of loss or damage caused by changes in social economy, politics, technology and organization. Such as population growth, capital increase, production technology improvement, changes in consumer preferences, etc.

According to the causes

1. Natural risk: Natural risk refers to social production and social life caused by irregular changes in natural forces.