As an institutional investor, fund management has a complete risk control system and risk management system, which will be clearly stipulated in the fund contract and prospectus. First of all, fund management companies have risk control institutions such as risk control committees, which are responsible for controlling the risks of fund operation as a whole. Secondly, the internal risk control system mainly includes: investing in strict accordance with laws and regulations and fund contracts, and not engaging in businesses that prohibit fund investment; Adhere to the principle of independence, fund assets and self-owned assets of fund companies are independent of each other and managed separately; The front and back office departments operate independently and so on. Moreover, the fund company has internal supervision and audit control, which can prompt the risks in the company's internal management and investment operation or put forward suggestions for improvement in time. There is also the post of inspector general within the fund company, whose duties can cover all business links of the fund and the fund company.

For example, in the operation of stock-based funds, if the position ratio of a single stock is close to the upper limit of relevant laws and regulations, even if the stock rises higher and contributes more to the net value of the fund, the risk control department within the fund company will constantly remind the fund manager directly until the risk "alarm" is lifted; During the stock market rally, if a pure bond fund buys shares at a ratio exceeding 20% of the fund assets, the risk control department will also remind relevant investors until the investment ratio returns to the contractual scope.

For individuals, the risk control of investment mainly depends on individual discipline, and it is impossible to have a professional department to supervise every move in investment like institutional investors. However, you can also set a "warning line" for your own investment. For example, if individual investors think that their risk tolerance is not high, and they are only suitable for investing some assets in high-risk equity funds or buying stocks directly, they don't have to be depressed because they missed the rising profit market. Abiding by your own investment discipline is the best risk control method.