What factors determine a product's risk grade?

The risk grade of investment products (a system of at least 6 levels, with grade 1 being the riskiest) is determined by considering the volatility of the underlying assets, credit rating, complexity of the product structure, maximum possible loss of principal, ease of redemption or trading, exchange rate volatility and so on.

Market risk and credit risk are assessed separately to determine an overall grade, and as a rule, foreign currency products have their grade raised to reflect exchange rate risk. High-complexity financial investment products in principle cannot be rated less risky than grade 2, regardless of the calculation result.