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Credit risk is the risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased collection costs.

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thank you for invitation

Credit risk is the possibility that customers who have been granted credit will either fail to pay when payment is due or will delay payment and take longer credit than agreed. Failure to pay is a bad debt risk which has a direct impact on profits. Delayed payments from customers also create a cost, however, since money is still owed that ought to be cash in the bank , thereby increasing interest costs ( on current borrowing) or reducing interest income ( from cash on deposit).

inability to pay the loan back

vivek vijayvergia
by vivek vijayvergia , Cross Currency Dealer

The risk of default on a debt that may arise from a borrower failing to make required payments in the form of interest or pricipal.

Robert Wilcox
by Robert Wilcox , Partner , Gulf Banking Consultants

Understanding of a borrowers ability, capacity and willingness to repay debt in accordance with the lending protocals

Anas Magdi Khalifa khalifa
by Anas Magdi Khalifa khalifa , Credit Risk Analyst , nexia international

its the risk of financila loss and to asure that the bank borrower will not fail in the agreed payment  

asif ansari
by asif ansari , Junior officer , icici bank

the risk arises when the borrower fail to pay his interest and principal.

CA Ashwini kalange
by CA Ashwini kalange , Assistant Manager-Credit risk management , CITIBANK N.A.

Credit risk management is done properly when you dont allow your company to become Lehman Brothers 2ND

 

 

Lional Laksakanth Thanihasalam
by Lional Laksakanth Thanihasalam , Relationship Officer - Business Banking , Mashreq Bank

A credit risk is the risk of default on a debt that may arise from a borrower failing to make required repayment on time. The first route, the risk is that of the lender and includes lost principal and interest, disorder to cash flows, and increased collection costs factors.

The risk that a borrower will fail to pay interest and principal according to the agreed schedule

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