What is risk management and control?

Risk identification means that before a risk accident occurs, people use various methods to systematically and continuously understand the risks they face and analyze the potential causes of the risk accident. The process of risk identification includes two links: risk perception and risk analysis.

Perceived risk: Understanding the objective risks is the basis of risk identification. Only by perceiving risks can we further analyze risks, find out the conditions that lead to risk accidents, and serve for making risk treatment plans and risk management decisions.

Risk analysis: that is, analyzing various factors leading to risk accidents, which is the key to risk identification.

Risk identification

1. The process of identifying the nature of actual and potential risks through perception, judgment or classification.

2. The risks around people are varied, both current and potential, both internal and external, both static and dynamic, and so on. The task of risk identification is to find out the main risks faced by economic subjects from the complex environment.

3. On the one hand, risk identification can be judged by perceptual knowledge and historical experience; On the other hand, through the analysis, induction and arrangement of various objective data and records of risk accidents, as well as necessary expert visits, we can find various obvious and potential risks and their loss laws. Because risks are variable, risk identification is a continuous and systematic work, which requires risk managers to pay close attention to the changes of original risks and find new risks at any time.