What does risk control audit mean?

Risk control audit is an audit method to judge whether the borrower has the ability to repay the loan on time, which mainly includes the following three aspects:

1. The borrower's "character", that is, credit, should strictly review the user's credit information when borrowing, and identify the loan risk through big data.

2. Asset certificates provided by the borrower, including but not limited to real estate, vehicles and other types.

3. The borrower's repayment ability, according to the user's work income and debt situation to judge whether there is the ability to repay on time.

Risk control means that risk managers take various measures and methods to eliminate or reduce the possibility of risk events, or risk controllers reduce the losses caused by risk events.

There are always some things that cannot be controlled, and risks always exist. As a manager, he will take various measures to reduce the possibility of risk events, or control the possible losses within a certain range to avoid unbearable losses when risk events occur. The four basic methods of risk control are: risk avoidance, loss control, risk transfer and risk retention.

Definition:

Risk control means that risk managers take various measures and methods to eliminate or reduce the possibility of risk events or reduce the losses caused by risk events.

Risk avoidance:

Risk aversion means that investors consciously give up risk behavior and completely avoid specific loss risks. Simple risk aversion is one of the most negative risk management methods, because investors often give up potential target income while giving up risk behavior. Therefore, this method is generally only used in the following situations:

(1) Investors are extremely risk-averse.

(2) There are other schemes that can achieve the same goal with lower risk.

(3) Investors cannot eliminate or transfer risks.

(4) The investor cannot bear the risk, or the risk is not fully compensated.

Loss control:

Loss control is not to give up risk, but to make plans and take measures to reduce the possibility of loss or actual loss. The stage of control includes three stages: before, during and after. The purpose of pre-control is mainly to reduce the probability of loss, and the control during and after the event is mainly to reduce the actual loss.

Risk transfer:

Risk transfer refers to the act of transferring the transferor's risk to the transferee through the contract. The risk transfer process can sometimes greatly reduce the risk of economic entities. The main forms of risk transfer are contract and insurance.

(1) Contract transfer. By signing a contract, some or all risks can be transferred to one or more other participants.

(2) insurance transfer. Insurance is the most widely used way of risk transfer.