Credit Risk Assessment
/ˈkrɛdɪt rɪsk əˈsɛsmənt/
Definitions
- (n.) The process of evaluating the likelihood that a borrower will default on their financial obligations, used to inform lending and credit decisions.
The bank's credit risk assessment revealed the client was unlikely to repay the loan on time.
Forms
- credit risk assessment
- credit risk assessments
Related terms
See also
Commentary
Credit risk assessment is a foundational concept in financial law and regulation, often requiring precise evaluation metrics and compliance with lending standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.