Management And Control Of Business Risks

It is possible to make risk management and control possible. On the one hand, through the prevention and control in advance, the possibility of adverse events such as disasters and losses can be directly resolved and eliminated; on the other hand, through the hidden danger management, in the process of the pformation of unfavourable events such as disasters and losses, such as disasters and losses, and other adverse events, the adverse events such as disasters and losses can be avoided by avoiding the occurrence of adverse events, or reducing the losses caused by adverse events.

Even in natural disasters.

For natural disasters, mankind can not eliminate it, but it can still avoid and reduce its losses through control.

And the adverse events relative to natural disasters, such as disasters and losses caused by man-made causes, can be avoided and eliminated through control.

The so-called business risk is the possibility of adverse events in the course of operation.

And this kind of adverse events may happen everywhere.

This kind of adverse event is a waste of enterprise resources, and the loss of assets is the result of setbacks and even bankruptcy.

Such adverse events can be attributed to two main reasons: one is the improper behavior of human beings.

Compared with the process of enterprise organization operation, it is the inefficiency of business decision making and the ineffective implementation of management decisions.

Improper decision-making in business management is a matter of seeking opportunity.

Whether it is to fish for fish or to catch fish on a scale is at least a waste and loss of business investment.

Two is the material force.

Compared with the process of enterprise organization operation, it is the expected effect of equipment and facilities and the invasion of natural disasters.

The occurrence of adverse events caused by material forces is the occurrence of safety accidents, and the possibility of adverse events caused by such causes may also be safety risks.

The reason why safety risk can be turned into a safety accident is also related to the improper behavior of the people. It is a person who neglects the existence of safety risk in the course of business operation, or he has not made full efforts to resolve this risk.

Therefore, the risk of these two reasons can be collectively referred to as business risk.

The risk of enterprise operation is directly embodied in the possibility of loss of all kinds of resources, including capital resources, human resources, market resources, social resources and information resources.

Regardless of the size of their losses, they are incompatible with the inaccuracy of decision making and the inability of decision implementation.

However, the leading causes of business risk are different in different industries and types.

In investment enterprises, the operational risk determined by people's behavior is especially general and concentrated, because every activity implemented directly is the formulation and implementation of business decision making, and the space exerted by material force is very narrow.

The loss of business risk, which is associated with human misconduct, may not be the destruction of the total wealth of society, but merely the pfer of ownership of resources.

However, compared with a specific enterprise, it is disastrous as a safety accident accompanied by material forces. Enterprises lose their ownership of resources, that is, the loss of their development opportunities is the loss of their opportunities of existence.

As far as the control and control of the two are concerned, their ways are also very different.

The key to safety risk management associated with material forces is to keep track of all material forces and their action processes that may cause accidents. The key to operational risk management that is associated with human misconduct is to monitor the decision-making process and implementation process that may lead to loss, and eliminate human misconduct choices.

Decision making, decision making and implementation are the embodiment of human behavior. Therefore, the reasons leading to failure in decision making and ineffective implementation of decisions are mainly two aspects: the lack of ability and quality of their actors, so that he has the decision-making power to surpass his ability and quality, and carries out the responsibility of making decisions that surpass his ability and quality.

Or his behavior is not clean, let him surpass the purpose of enterprise development, use authorized resources, public interest, and engage in malpractices, and steal resources for the purpose of enterprise development for personal purposes, or directly occupy or steal the resources authorized by them.

Whether it is lack of ability or moral integrity, it is related to the improper management of the right to control the use of resources. It is the pfer of enterprise resources to those who should not be authorized to use it.

Of course, if the owner of the resources that he controls is the owner himself, the invalidity, inefficient use and waste of resources will only be caused by the lack of his ability and quality, and the lack of moral integrity.

Because his direct use of his resources is directly reflected in his will goal. He, as the owner of his resources, has the right to determine the direction of his use.

Therefore, business risks can be attributed to personnel risk.

This person includes everyone from the front line staff to the chairman of the top decision maker and all the others who enter the organization's operation process.

Personnel risk can be divided into two sub categories, one is ability risk, and the other is the ability risk, which is caused by the lack of ability and quality of the behavioral main body of decision making and decision implementation, including the lack of knowledge and skills and the failure of enterprise development caused by the lack of experience. The two is moral hazard. It is a possible dereliction of duty caused by the lack of subjective and willful sense of responsibility of the main body of decision making and decision implementation, and the subjective intention formed by the temptation of interests, including the possibility of losing money and other undesirable consequences, including public interest and selfish exploitation.

The analysis of the connotation of adverse events is also divided into six broad categories, each of which is related to two sub categories of personnel risk.

(1) strategic risk: it itself is the possibility of setback of enterprise development caused by biased strategic decisions.

But if there is no decision maker and policy implementer's subjective intent to engage in public interests, engage in malpractices, and have no subjective sense of responsibility, lack of dereliction of duty, and lack of knowledge and skills, experience and experience lack of ability and quality can not happen.

(2) operational risk: it is the possibility of the loss of business operations caused by the failure of specific measures to achieve the goal of strategic decision in the course of business operation.

However, if the ability of all the people to carry out the specific work in the business process is high, and there is no subjective intentional fraud, private fraud and no subjective negligence, it will not happen.

(3) market risk: it itself is the possibility of loss of business brought about by market changes.

However, if there is no subjective unintentional dereliction of duty and subjective intentional misconduct by decision makers and policy implementers, that is the problem of ability and quality in personnel risk, and it is stupid and wrong that they do not have corresponding ability and quality.

(4) legal risk: it itself is the possibility of property damage and business distress caused by sanctions and penalties due to violation of laws and regulations.

But it is also directly related to the ability and quality of the personnel and subjective will, or they do not know the laws and regulations accurately, and they are punished and punished.

(5)

It is due to the uncertainty of the government's macroeconomic policies and regulations, including the adjustment of industrial policies, which may result in the loss of business operations.

But the two are also directly related to personnel risk, or lack of personnel quality and ability. They have not grasped the connotations and changes of the national government policies, or the temptation of people's behavior to attract interests and deliberately use the connotations and changes of the national government policies to seek personal gain.

(6)

It is the loss of personal safety and property safety caused by the action of material natural forces and the possible setback of business operations.

It is also mainly due to the lack of ability and quality of the personnel, not realizing the existence of the material natural forces and making advance arrangements for the adverse effects of their actions, or because of the inertia of people's paralysis.

Among the six types of risks mentioned above,

And the operational risk is due to the improper choice of people's active choice behavior, and the latter four are the existence of the passive adaptation behavior of human beings.

No matter whether the person's active choice behavior or human's passive adaptation behavior, as long as it is unsuitable, it will cause adverse events to the development of enterprises.

And the business process is directly constituted by people to complete an orderly set of activities to achieve profit development purposes.

In order to achieve the purpose of profit development, it is not the completion of human's active choice, that is, the passive adaptation of human beings.

Therefore, in every part of the business process, there are risks in business operation.