Credit Risk

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Description of Credit Risk. Explanation.

 

Definition Credit Risk. Description.


Credit Risk is the risk a firm runs that a counterparty to a loan, trade, or transaction will be unable or unwilling to pay for the transaction or repay the loan at maturity.


Companies try to counter credit risk through determining the credit rating of their counterparties, using credit scoring techniques.


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Credit Risk Forum  

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  The Role of Letters of Credit in Risk Management and International Trade (1 reactions)
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Compare with: Credit Rating  |  Credit Scoring  |  RAROC  |  Strategic Risk Management  |  Hedge  |  Non-Systemic Risk  |  Systemic Risk

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