Risk management is a decision-making process used by social organizations or individuals to reduce the negative results of risks. On the basis of risk identification, risk estimation and risk assessment, we should select and optimize various risk management technologies, effectively control risks, properly handle the losses and consequences caused by risks, and achieve maximum security at the lowest cost. The specific contents of the meaning of risk management include:
1. The object of risk management is risk.
2. The subject of risk management can be any organization or individual, including individuals, families and organizations (including for-profit organizations and non-profit organizations).
3. The process of risk management includes risk identification, risk estimation, risk evaluation, risk management technology selection and risk management effect evaluation.
4. The basic goal of risk management is to achieve maximum security at the lowest cost.
5. Risk management has become an independent management system and a new discipline.
Extended data:
Risk management research methods include qualitative analysis and quantitative analysis.
Qualitative analysis method is a process of making logical judgments by investigating risks. The quantitative analysis method generally adopts the system theory method, which composes a system of several interacting and interdependent risk factors, abstracts them into a theoretical model, and uses mathematical tools such as probability theory and mathematical statistics to quantitatively calculate the optimal risk management scheme.
With the refinement of industry, diversification of management mode, deepening of finance and rapid innovation of technology in economic development, scientific identification, measurement and arrangement of risks must have corresponding technical support, and it is impossible to rely solely on experience and subjective judgment.
In terms of investment projects, pre-evaluation, loan pricing, credit decision-making, risk monitoring, capital measurement, impairment reserve, performance appraisal, portfolio management, post-loan management, etc. It is difficult to give consideration to risk preference and decision-making, and it also greatly affects the workflow, capital efficiency, project cost and other indicators.
Therefore, it is necessary to systematically study, comprehensively understand and apply the investment project analysis system, and evaluate the project with correct system tools and analysis methods.
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