How should I avoid risks at the start-up stage?

1. Risk control

①Diversification of international business; ②Diversification of financing; ③Denomination of local currency; ④Balancing offset method; ⑤Combination matching method; ⑥The law of reciprocal trade.

2. Risk transfer

①export, borrowed capital output for hard currency; imports, borrowed capital input for soft currency; ② forward foreign exchange trading; ③ foreign exchange options trading; ④ the use of early or delayed settlement; ⑤ the use of "Forfaiting" transactions; ⑥ risk insurance.

3. Risk avoidance methods

①Currency selection in the negotiations;

②Currency preservation.

4. Financial risk avoidance

Financial risk can usually be avoided through intentional avoidance, implementation of control, decentralized transfer and other ways to avoid. In the various stages of financial activities, different technical methods can be applied.

5. Financing risk avoidance techniques

First of all, make full use of its own funds, strengthen the control of its own funds, a variety of borrowed money to be strictly approved and timely collection. Secondly, choose a reasonable capital structure, that is, the proportion of debt capital and own capital should be appropriate, make full use of the financial leverage of debt capital, and choose the best financing combination with lower total risk. Thirdly, pay attention to the matching of long and short-term debt capital to avoid the debt capital debt service period is too concentrated. Fourth, choose a variety of financing channels. For example, issuing stocks, bonds, borrowing from banks or non-financial institutions, and making full use of commercial credit such as accounts payable, notes payable, and advance receipts. Fifth, improve the efficiency of the use of funds. Whether it is own funds, or debt funds, only the efficiency of the use of funds to improve, in order to protect the enterprise's solvency and profitability.

6. Technical methods of investment risk avoidance

First of all, it is necessary to invest prudently, and to consider foreign investment for additional remuneration only when the funds are running well or when there are surplus funds. Secondly, if the investment is a necessary part of production and operation or risky investment, we must draw up a rigorous investment plan, scientific investment recovery assessment and demonstration, choose the best time to invest funds to avoid a shortage of funds or dysfunction. Third, reasonable investment portfolio. The investment portfolio includes the combination of different investment varieties, the combination of investment projects in different industries or sectors, and the combination of investment projects with different lengths and durations, etc., in order to pursue an optimal combination of profitability, risk, and soundness. Fourth, strengthen the research on systematic and non-systematic risks of securities investment in order to mitigate and offset the impact on the return of securities investment.