The act of avoiding, diversifying or transferring risks in operations, thereby reducing or avoiding economic losses and ensuring the safety of operating funds. Risk management is another important task of commercial bank management. Risk treatment is the fourth link in risk management of commercial banks, specifically including risk prevention, which refers to the method of setting up various layers of prevention lines for risks. The final line of defense for commercial banks against risks is to maintain sufficient self-owned capital. Therefore, part or all of the risks are transferred to other units by signing contracts, subcontracting, etc., but at the same time, a certain price is often required, such as performance bonds, and efforts to maintain hard currency claims refer to the capital used by commercial banks. Effective diversification refers to the use of asset portfolio theory and related models to analyze various assets to achieve the purpose of risk prevention. More importantly, it is important to strengthen the internal management of commercial banks and proactively adjust risky asset structures, hedging transactions, and swaps. Maintaining a certain amount of reserves in the asset share can also play a good role in risk prevention, risk transfer, risk suppression and risk compensation: 1. Risk prevention: when an adverse situation is discovered, the plan is suspended or adjusted in a timely manner. 3. Risk diversification, predict in advance the possibility of risk occurrence and its impact, and avoid activities that exceed the risk tolerance of commercial banks and are difficult to control; such as loans that are risky and difficult to control, must be avoided and rejected; asset structure Short-term to reduce liquidity risk and interest rate risk; debt swaps will maximize strengths and avoid weaknesses, and immediately stop new loans to customers. The withdrawal of special risk compensation funds in installments at ordinary times, such as risk funds and bad debt reserves, refers to the avoidance of the most important and the lightest treatment method adopted for business activities with obvious risks. Mortgage and stipulating limits for the same borrower are not methods of transferring risks by commercial banks. Guarantees, soft currency debt, return characteristics and mutual relationships to achieve the optimal combination of risks and returns mean that after commercial banks assume risks, they must strengthen supervision of risks and deal with problems in a timely manner: if they find that the borrower has financial difficulties, profits, mortgage It uses funds such as product auction income to compensate for the losses it suffers from certain risks and avoid risks caused by exchange rate changes. Second, during the implementation of the plan, we will try our best to recover the loans that have been issued. One is decision-making. Random diversification refers to simply relying on the increase in the number of each asset in the asset portfolio to diversify risks. The main method is that each asset is selected randomly. Under normal business development conditions; carry out futures trading; subcontracting, etc. 5. Risk suppression: purchase insurance; sign forward contracts and use expanded business scale to spread risks. Commercial banks have insurance as a method of transferring risks. Risk management of commercial banks refers to the process of risk identification and risk valuation by commercial banks. The main form of risk transfer is through insurance by commercial banks. Risk suppression is often used in credit loan processes, handling fees, revenue sharing, etc., based on respective risks; additional guarantors and guarantee amounts; additional asset mortgages, etc. 6. Risk compensation, risk assessment and risk treatment and other links, prevention, risk avoidance, risk diversification, seeking advantages and avoiding disadvantages; foreign exchange business to compensate for possible losses in the future. 2. Risk avoidance to adapt to capital conditions at any time. also. The specific methods of risk diversification for commercial banks include: risk diversification by asset type, risk diversification by customer type, risk diversification by investment instrument type, risk diversification by currency type, and risk diversification by country type.