Definition

Credit risk refers to the potential for a borrower to default on debt obligations, impacting lenders, investors, and financial institutions.

Related Services

Credit risk assessment, financial due diligence, and risk management services help businesses and lenders evaluate and mitigate credit risk.

Problem and Application

High credit risk can lead to loan defaults and financial losses. Lenders and businesses must conduct thorough credit analysis to minimize exposure.

Conclusion

Managing credit risk is essential for financial stability. Companies should implement strong credit policies and diversify risk exposure.