Credit risk: Difference between revisions
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#The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. | |||
The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter. | |||
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk. | In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk. | ||
#A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss. | |||
A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss. | |||
== See also == | == See also == | ||
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* [[Risk mitigation]] | * [[Risk mitigation]] | ||
* [[Sovereign risk]] | * [[Sovereign risk]] | ||
Revision as of 12:36, 5 August 2013
- The risk that a counterparty will not settle an obligation for full value, either when due or at any time thereafter.
In exchange-for-value settlement systems, the risk is generally defined to include both replacement cost risk and principal risk.
- A weighted measure reflecting both the maximum possible amount of the credit loss (also known as the credit exposure), and the likelihood of such loss.
