What are the differences and intersections between risk control and legal work in financial industries such as small loans and guarantee companies?

In the field of traditional finance and financial technology, risk control has become a sought-after profession. Many people's understanding of the so-called risk control is limited to financial institutions playing with models, setting parameters and doing statistics. This program only covers a very small number of risk control practitioners. From the standpoint of risk control in the financial field, it is necessary to have a deep understanding of the overall situation in a structured and hierarchical manner. In the field of strong supervision, there must be risk control. For example, financial enterprises have strong risk control departments, because the government has strict regulations, which is only a necessity.

Listed companies should manage internal control risks. Strictly speaking, this is also a strong supervision, but it is universal. Because listed companies are responsible to investors, they must disclose their operating data regularly and check the accuracy of the data. With the increasing scale of the company, there will be more and more risk control. This is a simple input-output ratio problem. In principle, as long as the income exceeds the cost, it should be included in the management category. The bigger the company, the more attention is paid to risk control. Legal affairs: in high-end companies, it is equivalent to internal lawyers, emphasizing the law; In a low-end company, it is equivalent to the company's secretary and everyone's typist. Compliance: Low-end companies do not have this position.

Generally speaking, there is no need for legal background, and the work content is mainly in the "regulated industry" to ensure that the business operation meets the regulatory requirements. Most of the work involves communication with the regulatory authorities. In fact, both politics and secretarial science are suitable for this job. Risk control: more about finance. More often, risk control is done from the perspective of capital security. The risk control of large companies is usually done by people with financial background. Eliminate or reduce the possibility of risk events and reduce the losses caused by risk events. In order to avoid unbearable losses when risk events occur.

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