Credit risk: Difference between revisions
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imported>Doug Williamson (Link with Covenant page.) |
imported>Doug Williamson (Add link.) |
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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 == | == See also == | ||
* [[Banker's payment]] | * [[Banker's payment]] | ||
* [[Counterparty risk]] | |||
* [[Covenant]] | * [[Covenant]] | ||
* [[Credit default swap]] | * [[Credit default swap]] | ||
* [[Credit derivative]] | * [[Credit derivative]] | ||
* [[Credit exposure]] | * [[Credit exposure]] | ||
* [[Capital risk]] | |||
* [[Event risk]] | * [[Event risk]] | ||
* [[Exchange-for-value system]] | * [[Exchange-for-value system]] | ||
* [[MCT]] | |||
* [[Pre-settlement risk]] | * [[Pre-settlement risk]] | ||
* [[Price risk]] | * [[Price risk]] | ||
| Line 18: | Line 28: | ||
* [[Risk mitigation]] | * [[Risk mitigation]] | ||
* [[Sovereign risk]] | * [[Sovereign risk]] | ||
* [[Putting a limit on losses]] | |||
==Other links== | ===Other links=== | ||
[http://www.treasurers.org/node/4351 Credit risk, Will Spinney, ACT 2008] | [http://www.treasurers.org/node/4351 Credit risk, Will Spinney, ACT 2008] | ||
[[Category: | [[Category:Manage_risks]] | ||
Revision as of 12:07, 14 June 2016
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
- Banker's payment
- Counterparty risk
- 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
