：
Credit risk refers to the risk that the counterparty fails to perform due debts. Credit risk, also known as default risk, refers to the possibility that borrowers, securities issuers or counterparties default for various reasons, causing losses to banks, investors or counterparties. Due to different settlement methods, the credit risks involved in on-site derivatives trading and off-site derivatives trading are also different. Credit risk refers to the possibility that the borrower cannot repay the debt or bank loan in full and on time due to various reasons and breach of contract. In the event of default, creditors or banks will bear financial losses because they can't get the expected income. Credit risk is caused by two reasons.
The periodicity of economic operation; In the period of economic expansion, credit risk is reduced, because strong profitability reduces the overall default rate. In the period of economic contraction, credit risk increases, because the overall profit situation deteriorates, and the possibility that borrowers cannot repay in full and on time for various reasons increases. Special events that have an impact on the company's operation occur; The occurrence of this special event has nothing to do with the economic cycle and has an important impact on the company's operation. For example: product quality litigation. Default risk, the risk that the debtor cannot repay the principal and interest on schedule or perform the debt contract for various reasons. For example, credit enterprises may lose money due to poor management, or they may be unable to repay their debts due to unsalable products and poor capital turnover due to market changes. Generally speaking, the greater the risk in the borrower's business, the greater the credit risk, and the level of risk is positively related to the level of income or loss. Market risk, the risk that the price of securities will fall due to market fluctuation of capital price. If the market interest rate rises and the bond price falls, bond investors will suffer losses. The longer the maturity of securities, the more sensitive it is to interest rate fluctuations, and the greater the market risk. Income risk is the risk that the actual income is lower than the expected income when people use long-term funds for many short-term investments.