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. | ||
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2. | 2. | ||
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. | ||
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* [[4Cs of credit]] | * [[4Cs of credit]] | ||
* [[5Cs of credit]] | * [[5Cs of credit]] | ||
* [[Bankable]] | |||
* [[Banker's payment]] | * [[Banker's payment]] | ||
* [[Capacity]] | * [[Capacity]] | ||
Latest revision as of 19:20, 29 March 2025
1.
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.
2.
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
- 4Cs of credit
- 5Cs of credit
- Bankable
- Banker's payment
- Capacity
- CCR
- Character
- Collateral
- Commercial credit risk
- Counterparty risk
- Covenant
- Credit
- Credit analysis
- Credit concentration risk
- Credit default swap
- Credit derivative
- Credit exposure
- Credit migration risk
- Credit quality
- Credit rating
- Credit rating agency
- Credit rating risk
- Credit risk diversification
- Credit risk management
- Credit spread risk
- Credit spread risk in the banking book
- Capital risk
- Default
- ECL
- Event risk
- Exchange-for-value system
- High-yield
- KMV
- Loss Given Default (LGD)
- Merton distance-to-default
- Obligation
- Operational risk
- Pre-settlement risk
- Price risk
- Prime bank
- Principal risk
- Probability of Default (PD)
- Putting a limit on losses
- Replacement cost risk
- Reputational risk
- Risk mitigation
- Sovereign risk
- TED spread
- Transaction risk
