What does risk management include?

1. Market risk: Market price fluctuations may cause losses to corporate operations or investments, such as the impact of changes in interest rates, exchange rates, stock prices, etc. on the profits and losses of relevant positions.

2. Credit risk: the risk that the counterparty is unable to repay the payment or goes bankrupt maliciously, leaving no way to seek repayment.

3. Liquidity risk: Risks that affect an enterprise's ability to dispatch funds, such as liability management, asset liquidity, and emergency liquidity response capabilities.

4. Operational risks: Risks caused to the enterprise by poor operating systems and operational errors, such as poor or contradictory process design, omissions in operation execution, and failure to implement internal controls.

5. Legal risks: The completeness and validity of the contract may cause risks to the enterprise, such as the legality of the business undertaken, the understanding of foreign language contracts and foreign laws.

6. Accounting risks: Risks that accounting processing and taxation may cause to an enterprise's profits and losses, such as the appropriateness and legality of accounting processing, and whether tax consultation and processing are complete.

7. Information risks: Improper security control, operation, and backup of information systems lead to risks to the enterprise, such as system failures, crashes, data destruction, security protection, or computer virus prevention and treatment, etc.

Expanded information Risk management is defined as when an enterprise faces market opening, regulatory lifting, and product innovation, which will increase the degree of change volatility and jointly increase the risk of operations. Good risk management can help reduce the probability of decision-making errors, avoid the possibility of losses, and relatively increase the added value of the enterprise itself.

Nowadays, many college students have focused their career planning on the field of risk management. They hope to be able to work in this area, but they may not fully understand risk management, or their understanding of it may be wrong.

A risk consultant named Phoebe in the United States is a recent graduate student. She said, "People usually think that risk work is boring, but it is not. In my opinion, risk management plays a very important role in the strategic direction of the company. A positive role. Effective risk management really came to the fore after the financial crisis and will continue to be an important part of corporate security.

References:

Baidu Encyclopedia-Risk Management