Early days: risk (uncertainty) = loss

Modern: Risk (uncertainty) = loss opportunity

Metric: Consequence Likelihood

1. Corporate risks are related to corporate strategy and performance;

2. Risk is a series of possible outcomes, not the most likely outcome;

3. Risks are both objective and subjective;

4. Risks often coexist with opportunities.

risk factors

Risk events (accidents): refer to accidental accidents that cause losses. is the direct cause of losses.

Loss: refers to the unintentional, unanticipated, and unplanned decrease in economic value. (direct loss indirect loss)

The three constitute a non-unity of risks; The three are interdependent and interact with each other.

The decision-making body of risk management is the risk management unit;

The core of risk management is to reduce losses and strive to create value;

The object of risk management can be pure risk or speculative risk;

The process of risk management is a process of decision-making and control.

Objectivity: People can only change the conditions for the existence and occurrence of risks within a certain time and space, and reduce the frequency of risk occurrence and the degree of loss.

Strategic: Mainly used at the corporate strategic management level to manage corporate-level risks at the strategic level. Reducing the expected value of risk losses is the value of comprehensive risk management.

Feasibility: There is a substitution relationship between risk loss cost and risk management cost to a certain extent.

Systematic: Comprehensive risk management must have a systematic and standardized method and establish and improve a comprehensive risk management system. The specific manifestations of systematicity are: comprehensiveness, extensiveness, and all-membership.

Professionalism: Professional talents implement professional management.

Duality: The business mission of enterprise comprehensive risk management is: loss minimization management, uncertainty management, and performance optimization management.

Principles for setting risk management goals: consistency principle, reality principle, clarity principle, and hierarchy principle

According to the level of goals, risk management goals can be divided into basic goals, direct goals, core goals, and supporting goals.

Planning functions: Design risk management plans and develop implementation plans;

Organizational functions: assign and combine the activities of the risk management unit and its production factors;

Guidance functions: interpret and judge risk response plans, communicate plans, exchange information and direct activities;

Control functions: Inspect, supervise, analyze and evaluate the implementation of the plan, and take corrective measures.