Qualitative is a possibility. It is a kind of fluctuation or the possibility of a certain result, not necessarily a loss, but also a gain, which is consistent with the usual high risk, high return and high risk and high loss.

I agree that risk is an uncertainty, and risk is not a loss. Because the existence of risks does not necessarily cause losses, risks may also bring benefits, but people often associate risks with losses, thinking that risks are actually potential losses and losses are real risks. Although it is not very scientific, it is easy to understand in reality.

2

Risk: Control or Management?

Should futures trading manage or control risks? As mentioned above, risk refers to uncertainty, possibility and objective existence. In the sense that there is no way to control the objective existence, what we need to do is to manage the objective existence of risks, which is the management of the whole process of risk identification, analysis, evaluation, measurement, control and treatment.

From this perspective, the control of risk should be the control of loss and the control of "real risk". In other words, risk control is only one aspect of risk management, a link, not the whole. In this sense, we should manage risks, not just control them.

three

Total risk management

Investment risks include market risks and operational risks. Among them, market risk includes interest rate risk, exchange rate risk and liquidity risk. Operational risks include losses caused by human factors, technical factors, safety factors and operational factors. The external environment we are facing, such as interest rate marketization, fundamental changes and changes in supply and demand, makes it more and more important and urgent for banks to manage market risks and operational risks.

four

Goal of risk management: zero risk?

Although we constantly emphasize the importance of risk management and risk control, should we pursue zero risk in the process of futures investment? According to the principle of equal risk and return, does zero risk mean zero return? In the case of zero risk, what about the transaction? Since zero risk can't be done and can't be done, we should identify and manage risks in time during development and control them within a known and tolerable range.