Core Viewpoint - Bank wealth management serves as a common investment method, providing investors with opportunities to participate in financial markets and achieve asset preservation and appreciation. However, understanding the common risks associated with bank wealth management is crucial for investors [1] Market Risk - Market risk is a significant risk faced by bank wealth management products, influenced by changes in financial markets such as interest rates, exchange rates, and stock and bond market fluctuations. Interest rate risk is a key component; when market interest rates rise, the attractiveness of fixed-income wealth management products declines, potentially lowering their prices. Conversely, when market interest rates fall, the performance of wealth management products may improve. Exchange rate risk mainly affects wealth management products involving foreign exchange, where fluctuations can lead to losses during currency conversion. Additionally, volatility in stock and bond markets can impact related wealth management products, particularly those invested in stocks or equity funds, which may face asset value depreciation during stock market downturns [2] Credit Risk - Credit risk refers to the risk of default or deterioration in the credit status of the entities in which wealth management products invest, leading to potential losses of expected returns or principal for investors. Funds from bank wealth management products may be directed towards various entities, such as corporations and government agencies. If a corporation performs poorly and cannot repay its debts, or if a government faces fiscal difficulties and fails to meet its debt obligations, the returns on wealth management products may be negatively affected. Banks conduct credit assessments and screenings of investment targets when issuing wealth management products, but even with rigorous evaluations, credit risk cannot be entirely eliminated [3] Liquidity Risk - Liquidity risk manifests when investors cannot timely liquidate wealth management products when needed or suffer losses during the liquidation process. Some bank wealth management products have fixed investment terms, preventing investors from redeeming funds early during the product's duration. Even if early redemption is allowed, it may incur fees or be redeemed at prices lower than the purchase price, reducing actual returns for investors. Furthermore, during periods of overall market liquidity stress, banks may face funding pressures, making it difficult to meet investors' early redemption requests, thereby exacerbating liquidity risk [4] Operational Risk - Operational risk encompasses losses arising from inadequate or problematic internal processes, human errors, system failures, or external events during the operation of wealth management products. For instance, bank staff may fail to adequately explain the risk terms and return structures of products during the sales process, leading to misjudgment by investors. In the operational phase, if a bank's internal risk management system malfunctions, it may miss optimal investment opportunities or fail to effectively control risks. Additionally, external factors such as cyberattacks or natural disasters can disrupt normal bank operations, negatively impacting the investment returns of wealth management products [5] Policy Risk - Policy risk arises from changes in national macroeconomic policies and financial regulatory policies. Adjustments in government fiscal and monetary policies can have widespread effects on financial markets. For example, changes in tax policies may affect the return levels of wealth management products, while loose monetary policies may lead to declining market interest rates, impacting the yields of fixed-income wealth management products. Changes in financial regulatory policies are also significant; adjustments by regulatory agencies regarding banks' business scopes and risk management requirements may compel banks to modify the design and investment strategies of wealth management products, potentially affecting their return and risk characteristics, leading to discrepancies between actual investment returns and expectations [6]