[外文] Risks are not only the cause of commercial banks’ losses, but also the basis of their profits. In a sense, commercial banks are such financial institutions which "deal in risks". And they use this "management of risks" as a basic method for making profits. The success or failure of commercial banks’ management depends on whether those banks are ready to bear risks or whether they are able to control and operate risks well. With the development of business and the intensification of competition, risks that face the commercial banks present complicated and varied features. They must distinguish, analyse, calculate and monitor these risks. Moreover, they should adopt scientific measures and methods to control these risks. The two above are the root for commercial banks to keep stable management and to realize their management principals including ssecurity, mobility and profitability. Management of risks has become one of the key parts that form the business of commercial banks.
I. Types of Risks Taking by Banks
The risks taking by banks mainly include 9 elements. They are credit risk, market risk, operating risk, mobility risk, country risk, reputation risk, law risk, compliance risk and strategic risk.[/外文]