Question

What is credit risk and how do bankers manage with details

Answer 1

• . Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The goal of credit risk management is to maximise a bank's risk-adjusted rate of return by maintaining credit risk exposure within acceptable parameters

Answer 2

Explanation:

three types of credit irsk.creditspread risk occuring due to a in the difference i vestments interest rates an the risk free return rate .