What exactly is included in measuring risk

Content of risk assessment:

To put it simply, risk assessment is about assessing the likelihood and impact of a risk occurring. Probability represents the probability that a given event will occur, and impact represents its consequences. The author believes that the following factors should be considered in estimating the probability of risk occurrence:

The liquidity of risk-related assets, the degree of manual participation in operation and management, and whether a large number of complicated manual calculations are involved in operation and management. The analysis of the degree of impact mainly refers to the analysis of the degree of negative impact on the achievement of the goal. The degree of risk impact is specific to the stated objectives, so companies should adopt different measures for different objectives.

Internal control based on risk management is mainly to evaluate the inherent risk and residual risk, that is, to consider both the inherent risk and the residual risk. Inherent risk is the risk that a business faces without taking any action to change the likelihood or impact of the risk. Residual risk is the risk that remains after the risk has been addressed.

The assessment of residual risks refers to the assessment of risks after the risk control or countermeasures taken in the daily management activities of the enterprise.

Strictly speaking, risk assessment is primarily an assessment of residual risk. To clearly assess the remaining risks after the risk response, it is necessary to establish an interactive process of continuous and repeated risk assessment, and risk assessment is not a one-time management activity. Whether it is an assessment of inherent risks or residual risks, what remains unchanged is to do so in terms of both likelihood and impact.

Of course, risk assessment should not only focus on the danger, but also consider both the risk of backing down because of the danger and the risk of not seizing the opportunity. That is, while assessing the likelihood and impact of the occurrence of risks, it is also necessary to assess the likelihood and impact of lost opportunities.

In general, after assessing the risks identified in terms of both probability and impact, countermeasures can be taken based on the results of the assessment.

Objective force majeure natural factors, subjective cognitive execution errors. And then subdivided

Risk analysisIt includes the following 4 aspects:

1. Risk identification.

It refers to the process of systematically classifying and analyzing the various potential risks faced by the enterprise, so as to add a recognition and identification. Risk identification generally uses "reverse thinking."

Approach to the project to look for factors that may be causing the project to be "unviable" in order to fully reveal the project's risks**.

2. Risk assessment.

It refers to the work of quantitatively assessing the impact and losses caused by risk events on people's lives, lives, property and other aspects after the occurrence of risk events.

3. Risk assessment: On the basis of risk estimation, the risk degree is divided through the corresponding index system and evaluation standards to reveal the key risk factors that affect the success or failure of the project. Risk assessment includes single factor risk assessment and overall risk assessment.

Uni-factor risk assessment, that is, to evaluate the impact of a single risk factor on the project, in order to find out the key risk factors affecting the project. The evaluation methods mainly include risk probability matrix and expert evaluation method.

The overall risk assessment of the project is to comprehensively evaluate the impact of several major risk factors on the project as a whole. For major investment projects.

or estimated to be a project with a high risk, the overall risk analysis of the investment project should be conducted.

4. Risk countermeasures: feasibility study before investment project decision-making.

It is not only necessary to understand the risks that the project may face, but also to put forward targeted risk countermeasures to avoid the occurrence of risks or minimize the risk loss, so as to help improve the safety of the investment and promote the success of the project.

Risk assessment. The main tasks include:

1. Identify the various risks faced by the assessment object.

2. Assess the risk.

probabilities and possible negative impacts.

3. Determine the organization's ability to withstand risks.

4. Determine the priority level of risk reduction and control.

5. Recommend risk mitigation countermeasures.

Before or after the occurrence of a risk event (but not yet over), the impact of the event on people's lives, lives, property and other aspects and the possibility of loss are quantitatively assessed. That is, risk assessment is to quantify the probability of impact or loss caused by an event or thing.

Extended Materials. 1.The cost of risk refers to the cost and the reduction of the expected economic benefit due to the existence of the risk and the occurrence of the risk accident.

2.Example 1, when purchasing materials, the first party breaches the contract, resulting in no timely supply, resulting in direct economic losses caused by the interruption of supply in the workshop.

Downtime loss) 5,000 yuan, which is the direct cost of risk loss.

3.Example 2, due to the gas leakage of the enterprise, I don't know whether it will cause harm to the local residents, and the cost of the residents' physical examination is 20,000 yuan, which is the intangible cost of risk loss.

4.Example 3: The cost of taking various measures to prevent or control a risk is also a risk cost.

5.Opportunity cost.

It refers to the value of giving up something in order to get something.

For example, in the summer, a college student worked part-time. Plan 1, do your own small business, it is expected to earn 5,000 yuan; The second option is to work for others, and it is expected to earn 3,000 yuan. If a college student chooses to work part-time, his opportunity cost is 5,000 yuan.

6.The cost of risk generally falls into three categories:

First, the actual cost of risk loss.

The actual cost of risk loss is made up of the cost of direct loss and the cost of indirect loss caused by risk.

Second, the intangible cost of risk loss.

The intangible cost of risk loss refers to the impact of risk on social and economic welfare, social productivity, and social resource allocation.

and the destructive consequences of social reproduction.

Third, the cost of preventing or controlling risk losses.

Expenses incurred for the various measures that must be taken to prevent and control risk losses.

This includes capital expenditures.

and depreciation, security personnel (including salaries, allowances, clothing, etc.), training program costs, teaching costs, and increased opportunity costs.

The risk assessment process is an audit procedure implemented by a certified public accountant to understand the auditee and its environment in order to identify and assess the risk of material misstatement at the financial statement level and the recognition level, regardless of whether the misstatement is due to fraud or error.

Risk analysis includes: risk identification, risk estimation, risk management strategy, risk resolution and risk supervision.

Risk factors:1Product size. Practical experience has shown that project risk is directly proportional to the size of the product. The accepted unit of measurement for product size is measured in ** rows or function points.

2.Technology-related. New technologies that have not been used before are risky. This includes new unused hardware, supporting software, and non-traditional development methods that lack standards and specifications. Technology obsolescence is also a risk. Technical risks are generally difficult to correct.

3.Development environment. Factors such as insufficient, unreliable, and inconvenient development tools will reduce development efficiency.

4.Organizational size and personnel experience.

5.Customer factor. Because the customer needs are often contradictory, the special needs of the customer are not understood, the customer does not understand the new technology used in the project, and it is difficult for the two parties to communicate.

Risk analysis: an assessment of the possible mistakes and economic benefits caused by various companies and enterprises in their investment decisions or production and operation choices. One of the ways to evaluate the economy.

Risk usually refers to the economic loss caused by the fact that the actual result deviates greatly from the party's prior estimate due to the influence of some factors that are subjectively beyond the control of the party. These deviations may be due to the lack of sufficient information on the factors and future circumstances to make accurate estimates, or they may be due to the discrepancy between the expected and actual effects due to the incomplete consideration of the factors.

Conducting a risk analysis helps to determine the degree to which changes in relevant factors affect decision-making, and helps to determine the sensitivity of investment plans or production and operation plans to changes in a particular factor. If a factor changes within a certain range but does not have a significant impact on the decision, the decision taken is insensitive to that factor. Knowing how sensitive the risk is to these factors under a given condition can help make the right decisions.

Risk analysis is to identify the uncertainties (subjectively uncontrollable) factors of the course of action, and to analyze its environmental conditions and sensitivity to the plan; Estimating relevant data, including the costs of action plans, the benefits to be obtained in different scenarios, and the likelihood of opportunities due to uncertainties, and calculating the economic effects of various risk scenarios; Make the right judgment, and so on.

For example, mining enterprises usually have to bear greater risks due to changes in geological conditions. The type of plant and equipment of the enterprise. The length of the analysis phase.

For example, the extension of the investment period will increase the risk of investment, and so on.

Risk assessment mainly includes: identifying the various risks faced by the assessment object, assessing the risk probability and possible negative impact, determining the organization's ability to bear risks, determining the priority level of risk reduction and control, and recommending risk reduction countermeasures.

Risk Assessment Implications:

1. Risk assessment refers to the quantitative assessment of the impact and the possibility of loss caused by the event on people's lives, lives, property and other aspects before or after the occurrence of the risk event (but not yet over). That is, risk assessment is to quantify the probability of impact or loss caused by an event or thing.

2. From the perspective of information security, risk assessment is the assessment of the threats, weaknesses, and impacts faced by information assets (that is, the set of information that an event or thing has), as well as the possibility of risks brought about by the combined effect of the three. As the basis of risk management, risk assessment is an important way for organizations to determine information security requirements, and it belongs to the process of planning the information security management system of an organization.

Split Closure Procedure:

The analytical process refers to the CPA's evaluation of financial information by studying the internal relationships between different financial data and between financial data and non-financial data. The analysis process also includes investigating fluctuations and relationships identified that are inconsistent with other relevant information or significantly deviate from expected data.

The analytical process can be used both as a risk assessment and substantive procedure and as an overall review of the financial statements. This standard describes the analytical procedures used to understand the auditee and its environment and to assess the risk of material misstatement, i.e., to use the analytical procedures as a risk assessment procedure.

CPAs implement analytical procedures to help identify unusual transactions or events, as well as amounts, ratios, and trends that have an impact on financial statements and audits.

In implementing the analysis procedure, the CPA should anticipate the possible reasonable relationship and compare it with the amount recorded by the audited entity, the ratio calculated on the basis of the recorded amount, or trend; If anomalies or unanticipated relationships are identified, the CPA should consider these comparisons when identifying the risk of material misstatement.