How to control the loan risk well

Apply for credit business approval according to the approval authority and application process to ensure the quality of pre-loan investigation and post-loan management of credit business; Strengthen the construction of post-loan management team, and equip people with rich credit experience to take post-loan management positions to ensure that the loan approval conditions are implemented before the loan is issued. Risk control in loans is risk control, which means that risk managers take various measures and methods to eliminate or reduce the possibility of risk events, or risk controllers reduce the losses caused by risk events. There are always some things that cannot be controlled, and risks always exist. As managers, they will take various measures to reduce the possibility of risk events, or control the possible losses within a certain range to avoid unbearable losses when risk events occur. The four basic methods of risk control are: risk avoidance, loss control, risk transfer and risk retention. Risk control methods:

1, loss control

Loss control is not to give up risk, but to make plans and take measures to reduce the possibility of loss or actual loss. The stage of control includes three stages: before, during and after. The purpose of pre-control is mainly to reduce the probability of loss, and the control during and after the event is mainly to reduce the actual loss.

2. Risk transfer

The act of transferring the risk of the transferor to the transferee through the contract. The risk transfer process can sometimes greatly reduce the risk of economic entities. The main forms of risk transfer are contract and insurance.

(1) Contract transfer: By signing a contract, some or all risks can be transferred to one or more other participants.

(2) Insurance transfer: Insurance is the most widely used risk transfer method.