Credit Risk definition

Credit Risk means the risk of loss or of adverse change in the financial situation, resulting from fluctuations in the credit standing of issuers of securities, counterparties and any debtors to which insurance and reinsurance undertakings are exposed, in the form of counterparty default risk, or spread risk, or market risk concentrations;
Credit Risk means the risk of loss resulting from a Customer’s failure to pay a Credit Approved Receivable on the due date solely because of the Customer’s financial inability to make such payment.
Credit Risk means the risk of finan- cial loss to an Enterprise from non- performance by borrowers or other ob- ligors on instruments in which an En- terprise has a financial interest, or as to which the Enterprise has a financial obligation.

Examples of Credit Risk in a sentence

  • Concentration of Credit Risk: The District places no limit on the amount that may be invested in any one issuer.

  • Custodial Credit Risk: For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the District will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

  • Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment.

  • Credit Risk Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.

  • Credit Risk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.


More Definitions of Credit Risk

Credit Risk means the customer's failure to pay the Account in full when due on its longest maturity solely because of its financial inability to pay. If there is any change in the amount, terms, shipping date or delivery date for any shipment of goods or rendition of services (other than accepting returns and granting allowances as provided in section 8 below), you must submit a change of terms request to us, and, if such pertains to a Factor Risk Account, then we shall advise you of our decision either to retain the Credit Risk or to withdraw the credit approval. Accounts on which we bear the Credit Risk are referred to collectively as "Factor Risk Accounts", and individually as a "Factor Risk Account". Accounts on which you bear some or all of the risk as to credit are referred to collectively as "Client Risk Accounts", and individually as a "Client Risk Account".
Credit Risk means the financial risk that a consumer will default on a loan.
Credit Risk means the risk of loss resulting solely and exclusively from the financial inability of your customer to pay at maturity a Receivable purchased hereunder.
Credit Risk means the risk that a counterparty, whether a participant or other entity, will be unable to fully meet its financial obligations when they fall due or at any time in the future;
Credit Risk. The risk that a customer will be financially unable to pay an Account at maturity, provided that the merchandise has been received or services rendered and accepted by the customer without Dispute.
Credit Risk means, in relation to a borrower, the risk that the borrower may not be able to meet its contractual obligations to repay the debt of the borrower;
Credit Risk means the risk of loss due to the failure of the issuer of a security.