Common methods for commercial banks to identify risks include

The risk management of commercial banks is a management activity for commercial banks to reduce the risks they may suffer in their management activities. Its goal is to seek maximum profit with minimum risk. Its contents mainly include: risk identification, risk analysis and evaluation, risk control and risk decision.

Risk identification is to identify the risk factors that may bring unexpected losses or extra benefits to commercial banks in the complex macro-micro risk environment and internal operating environment around commercial banks.

Making a risk list is the most basic and commonly used method for commercial banks to identify risks. In addition, the commonly used risk identification methods are: expert survey enumeration method, asset financial status analysis method, scenario analysis method, decomposition analysis method and fault tree analysis method.

The definition of risk management is that when enterprises are faced with market opening, deregulation and product innovation, the degree of fluctuation will increase, thus increasing the risk of operation. Good risk management helps to reduce the probability of decision-making mistakes, avoid the possibility of losses, and relatively increase the added value of the enterprise itself.