Why limit the risk prevention principle

First of all, we must understand the background of the risk prevention principle, risk, is uncertainty, risk prevention is through the scientific system to achieve the purpose of eliminating or mitigating the risk or uncertainty, therefore, the risk prevention principle came into being, secondly, we should understand what the risk prevention principle is, risk prevention refers to the identification of risks, risk prevention, risk control, risk avoidance, risk prevention principle is feasible, applicable, effective principle, economic, reasonable, advanced principle, active, timely, the whole process principleTherefore, the commonly used risk prevention methods include risk avoidance, risk prevention, self-insurance risk, and transfer risk, however, the risk avoidance method may bring the disadvantages of passive risk avoidance, such as avoiding the risk of the house being burned down and choosing to sell the house, so it is necessary to limit the risk prevention principle, that is, to limit the risk prevention method

In recent years, one of the important contents of the research on the risk prevention principle is to promote its institutionalization and concretization, such as limiting the scope of application of the risk prevention principle to "catastrophe" or "threat of irreversible damage", so it is necessary to limit it.

1. Why should there be risk control Risk control is to reduce the risk to a degree that is acceptable to the enterprise, and when the risk occurs, it will not affect the normal business operation of the enterprise. 1.Select security measures to reduce or fade the information security system.

1.The concept of risk An important dimension of modernisation in Europe, which originated in Europe, is the expectation of a better vision for humanity through the development of science and technology. Both from the historical experience based on the logic of internationalization and from the basis of it.

2.Elements of the precautionary principle The precautionary principle as a principle.

Risk aversion is a strategy that takes the initiative to abandon or change an activity to avoid the risks associated with an activity when it is considered that there is a high possibility of risk loss. Eliminating risk factors before they occur is one of the most thorough risk control techniques.

Risk aversion is one of the most effective ways to manage risk when the potential threat of project risks is extremely high and will bring serious consequences, and the losses cannot be transferred and cannot be sustained. Specifically, it can be implemented by modifying the project objectives, project scope, project structure, etc.

Risk aversion refers to the use of methods to eliminate or reduce risk.

1. Market risk response measures: maintain the educational characteristics and brand services of this education and training institution, establish a sound system, first play our brand out, let more parents accept recognition, let students learn things, and have obvious improvement, which is our goal. We need to implement this purpose into our actions, so as to gain the trust of parents and build our brand credibility, so that we can respond well to the market competition.

2. Market risk mainly comes from two aspects:

First, due to the existence of competitors, there is a shortage of students, resulting in a decline in sales revenue;

The second is the sharp increase in personnel wages and management costs due to the price of goods.

Third, market risk is caused by the fact that the underlying asset market is not stable and affects other subsidiary products, including risks arising from changes in interest rates, exchange rates, commodities and commodities. Risks naturally have corresponding solutions, and people have found feasible avoidance plans by observing the laws of risk occurrence, such as starting from enterprises to stabilize and develop the asset market at the grassroots level.

3. Risk-averse scheme:

1）.Improve the risk awareness of all employees of the enterprise, so that employees have a certain understanding of the hazards of risks, so that employees are fully prepared for future risks;

2）.Enterprises should build their own market information database, hire special personnel to summarize, collect, strengthen and store market information, enterprises should reasonably judge the trend of the market through these data, and analyze its future trends;

3）.Enterprises should stick to their hearts, insist on producing high-quality and high-quality products to give back to the market and users, build their own excellent brands, and create a good reputation;

4）.Enterprises should improve the organizational structure, carry out the production and operation process in an orderly manner, and let it drive in a normal order.

Extended Material: Interest Rate Risk.

1.Repricing risk.

Repricing risk, also known as maturity mismatch risk, is the most predominant and common form of interest rate risk and arises from differences between the maturity (in the case of a fixed rate) or the repricing period (in the case of a floating rate) in a bank's assets, liabilities and off-balance sheet operations. This asymmetry in repricing causes the bank's earnings, or intrinsic economic value, to change as interest rates change.

2.Yield curve risk.

The asymmetry of repricing will also change the slope and shape of the yield curve, that is, the non-parallel movement of the yield curve, which will adversely affect the bank's earnings or intrinsic economic value, thus forming yield curve risk, also known as interest rate term structure change risk.

There are three methods to avoid risk: the balanced offset method; Combination and pairing method; Equivalence.

Extended Information:1The financial risk of financing can usually be avoided by intentional avoidance, implementation of control, and decentralized transfer. Different technical approaches can be applied at various stages of financial activities.

Technical methods for financing risk aversion.

First of all, it is necessary to make full use of its own funds, strengthen the control and control of its own funds, and strictly examine and approve all kinds of borrowed funds and collect them in a timely manner. Secondly, choose a reasonable capital structure, that is, the ratio of debt capital to own capital should be appropriate, make full use of the financial leverage of debt capital, and choose the best financing combination with low total risk. Third, we should pay attention to the combination of long-term and short-term debt capital to avoid over-concentration of debt capital repayment periods.

Fourth, choose a variety of funding sources. For example, issuing **, bonds, borrowing from banks or non-financial institutions, making full use of commercial credit such as accounts payable, notes payable, and accounts receivable in advance. Clause.

Fifth, improve the efficiency of the use of funds. Whether it is its own funds or debt funds, only by improving the efficiency of the use of funds can the solvency and profitability of enterprises be guaranteed.

2.Investment. Technological approaches to investment risk aversion.

First of all, it is necessary to invest cautiously, and only when the funds are working well or there are surplus funds should you consider foreign investments for additional returns. Second, if investment is a necessary part of production and operation or risk investment, it is necessary to draw up a rigorous investment plan, conduct scientific investment evaluation and demonstration, and choose the best time for capital investment to avoid shortage of funds or ineffective operation. Third, make a reasonable investment portfolio.

The investment portfolio includes a portfolio of different investment varieties, a portfolio of investment projects in different industries or sectors, and a portfolio with different long-term maturities, etc., in order to pursue an optimal combination of returns, risks and stability. Fourth, strengthen the study of the systemic and non-systematic risks of ** investment, so as to mitigate and offset the impact on ** investment returns.

No matter what kind of capital contribution method is risky, it is impossible to completely eliminate the risk of capital contribution, what the investor can do is to control the risk within a reasonable range as much as possible and reduce the loss caused by the risk factor. For users, the following guidelines should be followed to grasp and manage risks:

1.Establish a stop-loss awareness. Some investors make the mistake of thinking that they only need to draw up a stop-loss strategy in a bear market, and they do not need a stop-loss strategy in a bull market and a balanced market, which is of course very incorrect.

In any market environment, there may be a shock situation, and investors are required to set corresponding stop loss points.

2.Adjust the share of the position. In the market, it is necessary to make appropriate adjustments to the share of positions according to the changes in the overall situation of the market and the development trend of the holdings, especially for some of the heavier investors, who should have a timely understanding of the market, so as to better grasp the opportunity to contribute and obtain more abundant returns.

3.Optimize the investment portfolio. No matter what market it is, investors should not always maintain the same choice of capital contribution portfolio, but should constantly adjust according to the market, survive the fittest, and retain the highest rate of return, so that they can not only obtain more ideal interest on capital contribution in the future, but also be able to effectively avoid the risk caused by the fall.

4.Don't put all your eggs in one basket. When making capital contributions, investors should not invest all their funds in one **, and can disperse their capital contributions in the right place, and choose different ** with better development conditions to ensure the safety of their funds.

What principles should be followed in the risk control approach.

1. The principle of feasibility, applicability and effectiveness.

The management plan should first formulate operational management measures for the identified risk sources, and the application of effective management measures can greatly improve the efficiency and effectiveness of management.

2. The principle of economy, rationality and advancement.

The management plan involves a number of tasks and measures should strive to save management costs, and the management information is fluent, the way is simple, and the means are advanced to show a high level of risk management.

3. The principle of initiative, timeliness and whole process.

The whole process of the construction period of the project is divided into the preliminary preparation stage (feasibility study stage, survey and design stage, bidding and bidding stage), construction and warranty stage, and production and operation stage.

For risk management, we should still follow the management idea of active control and prior control, take timely response measures and adjust the management plan according to the constantly changing environmental conditions and new situations and new problems that continue to emerge, and implement this principle throughout the whole process of the project, so as to fully reflect the characteristics and advantages of risk management.

4. The principle of comprehensiveness, system and all-round.

Risk management is a systematic and comprehensive work, which not only has complex causes, but also has a wide range of consequences and comprehensive treatment measures.

First, it is necessary to control the proportion of capital investment. In the initial stage, it is not advisable to operate heavy positions. At the beginning of the rally, the most suitable proportion of capital investment is 30%.

This proportion of capital investment is suitable for investors with short positions or shallow hedges, and for investors with heavy positions, they should give up the opportunity and use the limited remaining funds for long-term planning.

The second is the investment principle of moderation. When the overall trend of the market is improving, we cannot be blindly optimistic, let alone forget the risk and chase higher at will. Risk is not only present in a bear market, but also in a bull market.

If you don't pay attention, even **** will also lose money.

Third, stock selection should avoid dangerous reefs and shoals. When it encounters a dangerous reef and shoal, it will capsize, and the dangerous reef and shoal refers to the new stocks that are heavily held by ** and other institutions and have risen hugely, such as the recent non-ferrous metal stocks. Secondly, problem stocks, huge loss stocks, and stocks with hats and stars.

It is undeniable that there are opportunities for huge profits in this kind of **, but investors should realize that this kind of ** opportunity is often not something that investors can participate in casually, and in case of investment mistakes, they will lose a lot.

Fourth, diversify investments and avoid unsystematic risks in the market. Of course, diversification should be moderate, and when there are too many types of holdings, the risk will not continue to decrease, but will reduce the return.

Fifth, overcome the profiteering mentality. Some investors like to pursue huge profits, always blindly fantasize about the coming of the big bull market when they go well, and fantasize about every time they are reversed, and are unwilling to participate in the band operation or rolling operation with little profit, but are keen to chase the rise and double the skyrocketing stocks, and always hope to make a fortune by speculating in one or two stocks. Although the wish is good, the result of chasing the rise and killing the fall is that there is little to be gained.

1.Principle – The assumption of risk by the person in possession of the subject matter has nothing to do with the attribution of ownership.

1) The risk of damage or loss of the subject matter shall be borne by the seller before the delivery of the subject matter and by the buyer after delivery, unless otherwise provided by law or otherwise agreed by the parties. Note that delivery here includes actual delivery, instructional delivery and summary delivery, but does not include modification of possession.

2) The contract does not stipulate the place of delivery or the agreement is not clear.

1. If the subject matter is transported by the seller, the buyer shall bear the risk of damage or loss of the subject matter after the seller delivers the subject matter to the first carrier.

2. If there is no agreement to transport the subject matter by the seller, the seller will hand over the subject matter at the place of delivery, and the buyer violates the agreement and fails to accept it, and the risk of damage or loss of the subject matter shall be borne by the buyer from the date of breach of the agreement.

2.One of the exceptions: the sale of goods in transit.

Unless otherwise agreed by the parties, the risk of damage to or loss of the subject matter shall be borne by the buyer from the time when the contract takes effect.

3.Exception 2: Delay in receipt by the buyer.

If the subject matter cannot be delivered within the agreed time limit due to reasons attributable to the buyer, the buyer shall bear the risk of damage or loss of the subject matter from the date of the agreed delivery to the actual delivery from the date of breach of the agreement.