1, credit risk.
Also known as the risk of default, specifically, the loss that the debtor may bring to the bank if he fails to perform his contractual obligations after the expiration. For most banks, credit risk exists in almost all their businesses. Credit risk. This bank is a complex type and a big risk at that time.
2. Market risk.
Because the market price has changed, that is, interest rates, stocks, foreign exchange and commodity prices have changed, the bank's balance sheet business has lost money. The reduction of bank deposit interest rate is one of them.
3. Operational risks.
Operational risk refers to the risk of loss caused by imperfect internal procedures, personnel and systems or problems or external events.
Operational risk can be divided into four risks caused by people, systems, processes and external events, and can be divided into seven forms: internal fraud, external fraud, employment and workplace safety problems, customers, products and business practices, physical assets damage, business interruption and system failure, and imperfect execution, delivery and process management.
This kind of risk exists in many processes and can be transformed into market risk, credit risk and other risks.
4. Liquidity risk.
Liquidity risk refers to the possibility that a bank cannot meet its customers' liquidity needs in time without increasing the cost or losing the value of assets, thus causing losses. Liquidity risk includes asset liquidity risk and liability liquidity risk.
5. Country risk.
National risk refers to the possibility that economic subjects will suffer losses due to economic, political and social changes in other countries when communicating with non-residents. Country risks are usually beyond the control of creditors. National risks can be divided into three categories: political risks, social risks and economic risks.
6. Reputation risk.
Reputation risk refers to the risk of loss of intangible assets of banks due to unexpected events, policy adjustments of bank and market performance or negative results of daily business activities.
7. Legal risks.
Legal risk is that commercial activities violate commercial standards and legal requirements, resulting in failure to perform contracts and disputes.
8. Strategic risks.
Strategic risk refers to the potential risk that improper future development planning and strategic decisions may threaten the future development of banks in the process of systematically managing their short-term business objectives and long-term development objectives.