Loan risk control means that financial institutions conduct a comprehensive investigation and understanding of individuals or enterprises applying for loans through some legal channels, such as evaluating the production scale, core competitiveness, asset scale, operating conditions and prospects of enterprises, and inquiring about personal credit information and past loans, so as to realize risk control of enterprises or individuals before lending, which has an important reference role for lending institutions to decide whether to issue loans.

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.

1. Risk aversion means that investors consciously give up risky 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.

2. 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 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.

3. Keep the risk, that is, take the risk. In other words, if a loss occurs, the economic entity will pay it with any funds available at that time. Risk retention includes unplanned retention and planned self-protection.

(1) Unplanned reservation. Refers to the payment from the income after the risk loss occurs, that is, no financial arrangements are made before the loss occurs. When the economic subject is not aware of the risk and thinks that the loss will not happen, or when the maximum possible loss related to the risk is obviously underestimated, it will take unplanned reservation to bear the risk. Generally speaking, unreserved funds should be used with caution, because if the actual total loss is far greater than the expected loss, it will cause difficulties.

(2) protect yourself in a planned way. It means that before the possible loss occurs, all kinds of financial arrangements are made to ensure that the loss can be compensated in time. Planned self-insurance is mainly realized by establishing risk reserve.

How to control the risk of credit loan

Credit loan risk control methods: pre-loan investigation should be sufficient, loan operation should be standardized, post-loan inspection should be timely, customer account supervision should be strengthened, and customer trends should be understood from the side.

Credit loan refers to the loan issued by the borrower's reputation, and the borrower does not need to provide guarantee. Its characteristic is that the debtor can get a loan only by his own reputation without providing collateral or third-party guarantee, and the borrower's credit degree is used as repayment guarantee. For a long time, this kind of credit loan has been the main loan method for banks in China. Because this kind of loan is risky, it is generally necessary to conduct a detailed investigation on the borrower's economic benefits, management level and development prospects in order to reduce the risk.