The levels of 1 and R2 refer to the risk level that repayment of the principal is not guaranteed, but the principal risk is relatively small. Bank financing is divided into five levels, from low to high: R 1 (cautious type), R2 (steady type), R3 (balanced type), R4 (aggressive type) and R5 (radical type).

2. When investors start wealth management business in banks, they usually conduct risk assessment in advance. Only when the risk assessment results meet the risk level of relevant wealth management products can the wealth management business be opened.

Many investors feel that they are more aware of their risk preferences, so there is no need to do risk assessment. In fact, bank risk assessment is based on investors' risk preference and risk tolerance. Risk preference is subjective and risk tolerance is objective.