Although the risk of bank financial products is relatively low, bank financial products still have certain risks.

（1） Credit risk: If the investment in financial products is related to the credit of an enterprise or institution, such as the purchase of bonds issued by an enterprise, trust loans for investment enterprises, etc., the financial products need to bear the corresponding credit risk of the enterprise. If the enterprise defaults, goes bankrupt, etc., the investment in financial products will suffer losses.

（2） Market risk: The funds raised by financial products will be invested by commercial banks in relevant financial markets, and financial market fluctuations will affect the principal and income of financial products. The factors that cause the price fluctuation in the financial market are very complex. The price fluctuation is large, and the financial products purchased by investors face large market risks. For example, when encountering the financial crisis in 2008, most financial products related to the capital market suffered losses to varying degrees due to the sharp decline of the global capital market.

（3） Liquidity risk: Some financial products have a long term or are difficult to be realized in time. During the existence of financial products, investors may face the risk that they cannot redeem financial funds in advance or face the risk of loss due to realization at unfavorable market prices when they are in urgent need of funds. In order to reduce the impact of liquidity risk, investors can carry out asset allocation and invest part of idle funds in highly liquid products that can be redeemed at any time, so as to avoid timely redemption when using money. In addition, it should be noted that cash management products are subject to the terms of huge redemption. Once the customer's centralized redemption reaches a certain proportion, the bank has the right to refuse or postpone processing.

（4） Inflation risk: As the income of financial products is paid in currency, during the inflation period, the purchasing power of currency decreases, and the actual income after the financial products expire decreases, which will bring potential losses to financial product investors. The size of losses is related to the degree of inflation during the investment period.

（5） Policy risk: Influenced by financial regulatory policies and relevant laws and policies of the wealth management market, the investment and repayment of wealth management products may not be carried out normally, which will lead to lower income of wealth management products and even loss of principal of wealth management products.

（6） Operational management risk: the bank is the trustee of financial products, and its level of management and disposal of financial product funds, as well as its efforts, will directly affect the realization of financial benefits of financial product investment.

（7） Information transmission risk: The commercial bank will release information announcement of financial products to investors according to the agreement in the financial product specification, such as valuation, yield to maturity, etc. If due to communication failure, system failure, other force majeure and other factors, investors are unable to timely understand the financial product information, which may affect the investment decision of financial product investors and thus affect the realization of financial product income.

（8） Force majeure risk: The emergence of force majeure factors such as natural disasters and wars will seriously affect the normal operation of the financial market, may affect the normal processing of the acceptance, investment and repayment of financial products, and even lead to the reduction of the income of financial products and even the loss of the principal.

conclusion

The above are the risks of some common bank financial products. I hope you must pay attention to the above points when investing in bank financial products. If you understand the advantages and disadvantages of financial products of investment banks, you can certainly gain a lot of wealth from them.

（Writer：Lily）