Personal risks include risks of early death, illness and injury, and loss of income. Property risks include risks of damage to or loss of our property. Liability risks include risks of causing injury to other persons or damage to others’ property.Risk management refers to strategies that help reduce and minimize the possibility of a loss.In banking operation, risk management includes risk identification, measurement and assessment. Its objective is to minimize negative effects on the financial result and capital of a bank. Banks are required to form a special unit in charge of risk management.The risks to which a bank is particularly exposed include: Credit risk is the risk of negative effects on the financial result and capital of the bank caused by borrower’s default on its obligations to the bank. Foreign exchange risk is the risk of negative effects on the financial result and capital of the bank caused by changes in exchange rates. Interest rate risk is the risk of negative effects on the financial result and capital of the bank caused by changes in interest rates.