March 2017
Beginner
284 pages
5h 32m
English
Credit risk is the risk associated with an investment where the borrower is not able to repay the amount to the lender. This can happen on account of poor financial conditions of the borrower, and it represents a risk for the lender. The risk is for the lender to incur loss due to non-payment and hence disruption of cash flows and increased collection costs. The loss may be complete or partial. There are multiple scenarios in which a lender can suffer loss. Some of the scenarios are given here:
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