Four methods of risk management

There are four methods of risk management: risk retention, risk avoidance, risk transfer and risk reduction.

1, the risk is reserved.

Risk retention, also known as taking risks, refers to individuals taking risks on their own initiative, that is, using their own resources to make up for losses. Risk retention is actually a positive risk control method, which will make people prepare in advance and bear the risk loss.

2. Risk aversion

Risk avoidance refers to predicting the possibility of risk in advance and avoiding it as much as possible in real life. For example, if you know that there are frequent earthquakes in a place recently, you can choose to cancel your trip to that place. Don't get off and climb the wall in the beast area of the zoo.

3. Risk transfer

Risk transfer refers to a kind of risk handling method of transferring risk to others through contractual or non-contractual means. Risk transfer is the transfer of commitment to the loss caused by risk. When the risk comes, the big uncertain loss is compensated by the small certain cost. Risk transfer is the most economical and practical method for risks with small probability of occurrence and large loss.

Step 4 reduce risk

The loss control of venture capital refers to the prediction and pre-control of risks in advance under the condition of fully identifying and analyzing the risk factors of venture capital, so as to reduce the possibility of risks or the degree of losses after risks occur. For controllable risk factors, we can prevent and control them through planning, organization and coordination.

Measures taken for risk management

1. Improve risk management awareness. In business activities, enterprise managers should undertake projects according to their own abilities, conduct a pre-evaluation system for the projects undertaken, and try their best to avoid and abandon the risky projects confirmed after evaluation.

2. How many people undertake how many projects, so as to effectively avoid the risk of being easily punished because of insufficient personnel, personnel inconsistent with the tender and reduced qualifications. In addition, don't blindly expand the scale, so that all projects can be within the effective management scope of enterprise managers, effectively avoiding the risks brought by inadequate enterprise management.

3, enterprises should try to adopt standardized management mode, formulate standardized rules and regulations, post responsibility system, "Boss" magazine said that enterprise managers for each specific project, but also according to its own characteristics, supervision risks involved in the work, to develop more detailed and more targeted supervision implementation rules and risk management plans.