Results for tag: "Counterparty Credit Risk"

Counterparty Credit Risk (CCR) is a type of credit risk that arises from the potential for one party to default on its contractual obligations to another party. It is a risk that is inherent in any type of financial transaction, and is particularly relevant in the context of credit and loans. CCR is the risk that a counterparty will not be able to meet its obligations under a contract, resulting in a financial loss for the other party. CCR is typically managed through the use of credit risk management tools such as credit scoring, credit limits, and collateral. These tools are used to assess the creditworthiness of a counterparty and to limit the amount of risk that can be taken on. Additionally, CCR can be managed through the use of derivatives, such as credit default swaps, which provide protection against the risk of default. Companies in the CCR market include banks, credit rating agencies, insurance companies, and other financial institutions. These companies provide services such as credit risk assessment, credit monitoring, and credit risk management. Additionally, there are a number of software providers that offer solutions for managing CCR. Examples include Moody's Analytics, FICO, and Experian. Show Less Read more