During the development of small and

During the development of small and medium-sized enterprises, the management should be highly alert to the risks of operation, expansion and assets. The management has insufficient understanding and grasp of risk and has not established effective risk management mechanism. When the market demand suddenly increases, or the industry suddenly breaks out, the enterprise is eager to expand in order to seek development, immediately add a number of production lines to follow the market demand. When faced with the decision of new capacity expansion, whether to pass the rigorous risk management analysis, such as whether the market demand will change, whether the industry will be replaced and other industry risks. When enterprises make big decisions, whether there is a risk management mechanism to guide them to identify, evaluate and manage risks, and judge the possible serious consequences of risks. If the risk is not estimated in advance, after the occurrence of the risk, it is too late to imagine how to deal with the risk, whether the risk can be borne, the enterprise will face a more severe situation.