Credit risk: Difference between revisions
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imported>Doug Williamson (Link with MCT page.) |
imported>Doug Williamson (Linked to The Treasurers Handbook - Putting a limit on losses) |
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* [[Risk mitigation]] | * [[Risk mitigation]] | ||
* [[Sovereign risk]] | * [[Sovereign risk]] | ||
* [[Putting a limit on losses]] | |||
Revision as of 17:11, 1 December 2014
- 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.
See also
- Banker's payment
- Covenant
- Credit default swap
- Credit derivative
- Credit exposure
- Capital risk
- Event risk
- Exchange-for-value system
- MCT
- Pre-settlement risk
- Price risk
- Prime bank
- Principal risk
- Replacement cost risk
- Risk mitigation
- Sovereign risk
- Putting a limit on losses
