How to control risk, how to control risk

Venture capitalists' involvement in management.

Venture capital companies have a large number of experts in various fields, they are not only familiar with capital operation and business management practices, and rich investment experience and management experience make them familiar with the growth process of enterprises, for venture companies, especially in the seed stage, entrepreneurial enterprises, enterprises have advantages in technology and products, and lack of the ability and resources to promote products to the market and scale expansion, and this is the specialty of venture capital companies. Therefore, the investment of venture capital companies in venture enterprises is another process of optimal allocation of resources. But from another point of view, small and medium-sized enterprises have to give up part of the management rights to share with other investors when they get valuable funds, and some entrepreneurs who apply for venture capital do not have this mental preparation, which will cause misunderstanding and distrust among investors, and eventually lead to the failure of investment projects.

1.Investor regulation of the enterprise after venture capital.

2.Read and review the financial reports that are submitted to the business on a regular basis, 3Close 4Pay attention to the financial health of the business;

5.Participate in the board of directors of the enterprise, 6Participate in the formulation of major corporate decisions;

7.Participate in the formulation of business plans;

8.When the enterprise fails to complete the business plan, 9Ask the business to make an explanation;

10.Regular on-site visits to enterprises;

11.Pay attention to major personnel changes in the enterprise, 12intervene when needed;

13.control of the financing behavior of the enterprise;

14.The value of the business is evaluated on a regular basis.

Services provided to venture companies.

1.Provide start-up capital to the investee company;

2.As an advisor to entrepreneurs, 3Provide management consulting services 4business with professional talent intermediaries;

5.Assist in internal management and strategic planning;

6.Help enterprises with follow-up financing, 7and form an investment group;

8.Participation in the Board of Directors, 9Assist in solving major business decisions;

10.Introduce potential businessmen or customers;

11.Advising on legal and public relations;

12.Use the network of venture capital companies to provide information on technical information and technology guidance pathways;

13.Assist enterprises in organizational reorganization and mergers, 14Implement an alliance or cooperation strategy, 15and make recommendations;

16.Assist companies to go public.

The most straightforward way to do this is to diversify your investments!

Before the project enters the investment and construction, it must first go through the decision-making, financing and budget review and other links, and different links will have different investment risks. The implementation of effective risk management before the investment of the project can control the investment risk in the bud and avoid or mitigate the risk loss.

1.Risk management in the decision-making process of the project. Project decision-making is the process of selecting and deciding on investment behavior plans, the technical demonstration of the necessity and feasibility of the proposed project, the economic and technical comparison of different construction plans, and the process of making judgments and decisions.

Correct decision-making is the premise of reasonable determination and control of project investment. Correct decision-making depends on the scientific nature of decision-making, especially the investment decision-making of large-scale projects is highly complex and systematic, and its success or failure has a large impact and investment risk.

2.Risk management in the project financing process. Fund raising is regarded as the "blood" of the operation of investment projects, and is the focus of interest and risk gathering.

In the process of project financing, it is necessary to reasonably determine and arrange the amount of funds to be used through the combination of internal financing and external financing, and the planning of the use of short-term and long-term funds, so as to save the cost of capital use and improve the efficiency of capital use, so as to effectively control the financing cost and then control the total investment of the investment project.

Since the financing link is prone to financial risks and capital operation risks, attention should be paid to the selection of various financing methods, the use of financial instruments and the use of funds, so as to minimize the cost of financing and the use of funds.

3.Risk management in the review of project budget estimates. In order to strengthen investment control over investment projects, it is inseparable from the examination of budget estimates.

Budget estimation refers to the preparation and determination of all the cost documents of the project from preparation to completion and delivery according to the preliminary design or expanded preliminary design drawings, budget estimates or budget estimates, various cost quotas or fee standards, and the natural, economic, technical and equipment, and material budgets of the construction area. The purpose of reviewing the budget estimates is to: rationally allocate investment funds, strengthen the management of investment plans, and reasonably determine and effectively control project investment; Promote the combination of technological advancement and rationality of design; The investment scale of the approved project can make the overall control accurate and complete; Provide a reliable basis for the implementation of project investment funds and improve the investment efficiency of investment projects.

The financial evaluation before the investment of the project is very important, it is related to the value of the investment project, there is no greater value of the project is not worth the investment, but where is the value of the investment, whether it is true and reliable, this can not only be based on whether the project technology is advanced, whether there is a market to qualitatively judge, but also to do a detailed evaluation of economic feasibility and investment value. Financial evaluation is an important part of this. The lack of financial evaluation is questionable about its economic viability.

In the company's investment decision-making process, one of the links is the feasibility demonstration of the investment project by the financial department to participate in and issue financial audit opinions, the company has developed a set of standard "due diligence financial feasibility analysis working papers", from the completeness of the collection of information to the identification of assets, liabilities, equity of the individual evaluation details made a standardized description, so that the investment evaluation work has rules to find, the investment project demonstration process plays a role in both prompting and demanding. Whether the pre-investment investigation and understanding of the investment project is sufficient, whether the judgment of its value is accurate, whether the pricing is reasonable, and whether the negotiation conditions are favorable directly determine the difficulty of post-investment management, and also determine the size of the profit space when exiting in the future, so the pre-investment due diligence and various reviews are very important. The financial department issues financial review opinions on the feasibility report, which can analyze the investment value of the project from different perspectives, avoid investment risks, and provide reference for leadership decision-making.

The core of finance is risk control, which refers to the risk manager taking various measures and methods to eliminate or reduce the possibility of risk events, or risk controllers to reduce the losses caused by risk events.

The four basic methods of risk control are: risk avoidance, loss control, risk transfer, and risk retention.

The core of finance is risk control Risk avoidance is the conscious abandonment of risk behavior by investment entities and the complete avoidance of specific loss risks. Simple risk aversion is one of the most negative risk treatments, as investors often give up their risky behaviors at the same time as they give up potential target returns. Therefore, this method is generally only used in the following cases:

1) Investors are extremely risk-averse.

2) There are other options that can achieve the same goal, and the risk is lower.

3) The investor is unable to eliminate or transfer the risk.

4) The investor is unable to bear the risk, or is not adequately compensated for the risk. Risk transfer refers to the act of transferring the risk of the transferor to the transferee through a contract. The risk transfer process can sometimes significantly reduce the risk level of economic agents.

The main forms of risk transfer are contracts and insurance.

1) Contract Transfer. By entering into a contract, some or all of the risk can be transferred to one or more other participants.

2) Transfer of insurance. Insurance is the most widely used form of risk transfer. Risk retention, i.e., risk-taking.

That is, if a loss occurs, the economic agent will pay with whatever funds are available at that time. Risk retention includes unplanned self-retention and planned self-insurance.

1) No plan to keep yourself. It refers to the payment of the risk loss out of income after the occurrence of the loss, i.e. the funding arrangement is not made before the loss. When economic agents are unaware of the risk and believe that the loss will not occur, or when the maximum possible loss related to the perceived risk is significantly underestimated, the unplanned retention method is adopted.

In general, unfunded retention should be used with caution, as it would cause liquidity difficulties if the actual total loss was much greater than the projected loss.

2) Have a plan to self-insure. It refers to making various financial arrangements to ensure that funds can be obtained in time to compensate for losses before possible losses occur. Planned self-insurance is mainly achieved by establishing a risk reserve**.

There is a risk, we all know this, so how to use the risk control?

1. Psychological manipulation of risks.

In unstable times, the funder makes mistakes, so the more unstable and punctual he is, the more he must maintain a stable mentality, but he can't rush it.

2. Operationally manipulate risks.

After selling ** profit, the funds in your hand should be idle, don't just sell ** today, just **** immediately, so that if **** is good, it is okay, but if ** is unstable it will face a lot of risk.

3. Manipulate risks from the top of the world.

The more unstable it is, the greater the risk. As soon as the market presents new risks, it will fall and heavy positions may face serious losses. Therefore, when the investor contributes **, it is necessary to appropriately reduce the position and operate with a small number of **.

Fourth, from the shareholding control risk in the shareholdings, we have to hold some resistance to the fall on the one hand, on the other hand to cut the number of shares, if the shareholding is more, in the operation will be stretched, especially when the **** suddenly changes, we will be difficult to respond. Therefore, a small shareholding can improve the ability to respond quickly to risks.

Fifth, strategically manipulate risks.

The most useful way to manipulate risk is to set a take profit and stop loss, if you find that the stock index is showing a significant break, the top of the technical indicator may be held, the profit may be reduced, then you need to maintain the method. Set the take profit in time to maintain the profits obtained, and set the stop loss to control the increase in losses.

Before talking about controlling risk, we first need to define what risk is. The encyclopedia defines it like this: risk is the uncertainty between the purpose of production and the results of labor, which has two meanings:

One definition emphasizes that risk manifests itself as uncertainty of returns; The other definition emphasizes that risk is the uncertainty of cost or price, if risk is expressed as uncertainty of benefit or cost, it means that the result of risk may bring loss, profit or no loss and no profit, which is a generalized risk, and the activity of the owner to exercise ownership should be regarded as a management risk, and financial risk belongs to this category. The risk is manifested as the uncertainty of loss, which means that the risk can only show losses, and there is no possibility of profit from the risk, which belongs to the narrow sense of risk. Risk is directly proportional to return, so generally aggressive investors tend to be risky in order to obtain higher profits, while prudent investors focus on safety considerations.

Risks are objective. As a manager, we will take various measures to reduce the possibility of risk events, or control the possible losses within a certain range, so as to avoid unbearable losses caused by the occurrence of risk events. The four basic methods of risk control are:

Risk avoidance, loss control, risk transfer, and risk retention.

From an economic point of view, risks are everywhere, and the ups and downs of ** are the most common risks, if.

I have bought and sold **, and I will have a deep awareness of this. The development of the market economy to this day requires us to build up a sense of risk and be able to take necessary measures (such as buying insurance, saving appropriately, etc.), which is the wisest.

In the context of the rapid development of the economy, more and more people have begun to enter the profession, which has also made it a hot topic among funders. Investors who have a certain understanding of ** are all applying for silver.

Know that there are many risks, and funders must learn how to manipulate risks when operating. Next, let's introduce how to manage risk for funders.

First, some investors only see the advantages and benefits brought by the capital, but they ignore the risks that exist in the capital, and they still need to be cautious, so as to effectively reduce the risk of capital contribution and ensure the income of capital contribution.

Second, the first risk is leverage, in the expansion of capital contribution income also expands the risk of capital contribution, so in the process of carrying out **, if the surplus of the funder can not work, in the process of operation has been losing money, then before the first need to have a correct judgment of themselves, to see if they are suitable for the **.

Third, too high a share is also a major risk of financing, especially for the first contact with the first time of the funders, let alone blindly ask for a high share. The higher the share, the greater the risk, so the funder who advocates the first contact with the ** should not choose more than 5 times the share.

Fourth, do not operate with a full warehouse all the time. Many investors may have this feeling, if there is no full position operation when doing it, they feel very lost, because they have already paid the interest, even if they do not have to, they still have to pay the interest, so they have to keep the full position operation, but if the judgment is wrong, the full position operation will only bring losses to the funders.