Whois & Analysis for creditriskmonitor.com

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.

The loss may be complete or partial.

In an efficient market, higher levels of credit risk will be associated with higher borrowing costs.

Because of this, measures of borrowing costs such as yield spreads can be used to infer credit risk levels based on assessments by market participants.

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

Risk management’s objective is to assure uncertainty does not deflect the endeavor from the business goals.

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default.

Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

Precision is a description of random errors, a measure of statistical variability.

Accuracy has two definitions: