Abstract: Risk budget is winning academic circle,pension fund and assets management field a lot of extensive concern abroad,and considered as a kind of innovation of portfolio management.Domestic investors realize the important meaning of portfolio risk control day by day,and it is close to the first important task.This paper passes the budget of the risk for n investment management and control technology of risk.We utilize the factor model to disuss the factor risk of investment portfolio and carry on the example analysis.

Key words: factor model, risk budget, investment portfolio, risk management