The invention provides a fault risk monitoring method and system of a distribution transformer, and belongs to the technical field of transformers. Through establishment of the complete fault analysis monitoring method and system, the technical problems that a single model cannot solve all problems since the kinds, types, and deployment environments of the distribution transformers are diversified, and technical parameters and operation principles of various distribution transformers are different are solved, the system formed by modules and equipment including the power distribution network transformer, an equipment fault root cause database, an analysis and prediction module, a circuit breaker, and lines etc., is employed, and the overall fault risk monitoring of the distribution transformer is effectively completed.