Exploring the Company's Risk Management in Equity Investment --Taking Shandong Hanlin’s Betting Agreement as an Example

Abstract

With the full restoration of normalized operation of the social economy, China's equity investment market is hot to pick up. In equity investment, while the investing company obtains greater benefits, there also exists the possibility of loss brought by market risk and non-market risk, so it is necessary to improve the risk management measures of the equity investment company to improve its risk prediction and response ability.It is necessary for investing company to ensure that the investment firm has the ability to deal with all risks that may arise and can proactively address and anticipate them. This paper explores and analyzes the reasons for the failure of Shandong Hanlin's betting agreement, and further summarizes the risk management measures that should be taken by the company in equity investment to promote the healthy and sustainable development of China's equity investment market.At the same time, it also expounds the types of risks that may exist in the investee company, the methods of risk control and the way of selection.