What aspects does risk management include?

1. Market risk: the risk that fluctuations in market prices may cause losses to the operation or investment of enterprises, such as the impact of changes in interest rates, exchange rates and stock prices on relevant profits and losses.

2. Credit risk: the risk that the counterparty cannot pay the money or has no recourse because of malicious bankruptcy.

3. Liquidity risk: risks that affect the capital allocation ability of enterprises, such as debt management, asset liquidity and emergency liquidity.

4. Operational risk: risks brought to enterprises by poor operating system and negligence in operation, such as poor or contradictory process design, omissions in operation and implementation, and failure to implement internal control.

5. Legal risks: the risks that the completeness and validity of the contract may cause to the enterprise, such as the legality of the contracted business, the recognition of foreign language contracts, foreign laws and regulations, etc.

6. Accounting risks: risks that accounting treatment and taxation may have on the profits and losses of enterprises, such as the appropriateness and legality of accounting treatment, the integrity of tax consultation and treatment, etc.

7. Information risk: risks brought to enterprises by improper security control, operation and backup of information systems, such as system failure, collapse, data destruction, security protection or computer virus prevention.

The definition of extended data risk management is that when enterprises are faced with market opening, cancellation of laws and regulations and product innovation, the fluctuation degree of changes will increase, thus increasing business risks. Good risk management helps to reduce the probability of decision-making mistakes, avoid the possibility of losses, and relatively increase the added value of the enterprise itself.

Nowadays, many college students focus their career planning on the field of risk management. They hope to work in this field, but they may not fully understand risk management, or there are some mistakes in their understanding of risk management.

Phoebe, an American risk consultant, is a graduate student who just graduated. She said, "People usually think that risky work is boring, but it is not. In my opinion, risk management has played a very positive role in the strategic direction of enterprises. After the financial crisis, effective risk management really stands out and will continue to be an important part of enterprise security.

References:

Baidu encyclopedia-risk management