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credit risk

American  

noun

  1. the possibility of loss if a borrower defaults on a loan.

  2. a borrower regarded as likely to default on a loan.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

However, it is not without risk, including credit risk, liquidity risk and manager-specific risk.

From MarketWatch • Mar. 30, 2026

This structure transfers some credit risk to the customers, BofA explained.

From Barron's • Mar. 24, 2026

After dropping out of residency, Attia worked as a credit risk consultant for McKinsey & Company, and later at an energy company, as a profile of him in the New Yorker notes.

From Slate • Feb. 26, 2026

After the 2008-09 crisis, regulators encouraged banks to reduce credit risk and hold assets deemed safe and liquid.

From The Wall Street Journal • Jan. 20, 2026

Stage One was to apply a formula that had been dreamed up to cope with corporate credit risk to consumer credit risk.

From "The Big Short" by Michael Lewis