What is the role of transferring credit risk? What is the various instruments used to transfer this risk?

Q: how can Credit Metrics Model resolve credit risk management issues

A: what is credit risk- credit risk is that the risk to default ensuing from a receiver failure to…

Q: In your own words, explain the advantages and disadvantages of credit.

A: Credit involves making the purchase of goods or availing services and paying for the transaction in…

Q: In what way does leverage increase the riskiness of a loan?

A: The advantage a financial specialist or investor gets from utilizing debt is called financial…

Q: What are credit derivatives, and how do they operate?

A: Derivative instrument is the financila instrument which derive its value form the underlying asset.

Q: What is meant by credit risk analysis?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: All are items that can minimise credit risk, except. Guarantor  Mortagage Collateral  Pledge

A: The chance of a loss stemming from a borrower's failure to repay a loan or satisfy contractual…

Q: What is the causes of the financial risk?

A: financial risk - financial risk is the possible danger of losing money from an investment made by…

Q: Differentiate between interest rate risk and reinvestmentrate risk.

A: The major representation of the interest rate risk is the differentiation in the bond market price…

Q: What is a financial security?

A: Investors use financial security to be secured financially as they can get some income on periodic…

Q: What is financial risk, and how does it arise?

A: Answer: Usually, financial risk refers to a situation where a company is not able to pay its fixed…

Q: what basic criteria are commonly used in evaluating credit risk?

A: Credit risk is the risk of facing a loss due to a counterpart's failure to repay the debt in part or…

Q: Describe some ways to manage credit risk at a nonfinancialcompany

A: Evaluation of the customer prior to granting credit. Nonfinancial Company does self-evaluation or…

Q: Define the term exposure to financial risk?

A: The question is based on the concept of Financial risk and its exposure.

Q: What is the importance of Credit Rating Agency?

A: Credit Rating agencies assign the credit rating to the issuer of debt. They provide information…

Q: What are the major drivers of portfolio-level credit risk?

A: Financial institutions are frequently mapping and controlling the risk from credit exposures at…

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

Q: a) What is the general characteristics of Risk Financing – Risk Retention Methods

A: Hi, Thanks for the Question, Since you asked multiple questions, we will answer first question for…

Q: loan portfolio audit

A: Loan Portfolio Audit-:A Loan Portfolio Audit furnishes an organized, in-depth investigation of…

Q: Discuss the relationship between Credit View and Monetary Policy.

A: Monetary Policy:Monetary Policy is a policy that is planned and implemented by the central bank of a…

Q: main theories for internatonal banking explain.

A: International banking include cross-border banking services as well as bank foreign direct…

Q: what are the strategies to improve credit

A: Credit is referred as an agreement, which are between the borrower and the lender. It might decrease…

Q: What is duration gap model? Explain the concept of duration. How duration measure can be used to…

A: Duration gap measures the mismatch between the duration of assets and liabilities held by a…

Q: What are the advantages and disadvantages of using credit?

A: Credit is defined as the financial agreement where the borrowers receive something valuable and in…

Q: What is off–balance sheet financing?

A: To keep the debt-to-equity and leverage ratios low, companies opt to record certain liabilities and…

Q: How can fi nancial statement analysis be used to evaluate the credit quality of a potentialfi…

A: Whenever, an investor is considering an investment proposal, he need to analyze the various things…

Q: What is credit risk

A: In the world of finance credit risk is one of the most important risk and one of the most tangible…

Q: What is financial intermediary?

A: A financial system comprises of financial intermediaries to intermediate and facilitate the…

Q: Could you explain the term "financial risk" in simple terms

A: Financial risk - The risk of losing money on an investment.

Q: Explain the difference between financial risk andbusiness risk.

A: Risk is referred as the chance of loss. An activity which leads to loss is termed as risk. The risk…

Q: How to define credit risk and how to limit that risk.

A: Business provide credit to customers to encourage buying more So payment are paid by customers on…

Q: what are the benefit to the financial institution and their consumers of measuring or mitigating…

A: A strategy for planning for and decreasing the impact of hazards on an organisation is risk…

Q: discuss how a risk management tool can be used to mitigate liquidity risk and credit risk

A: The process of identifying, assessing, and controlling hazards to an organization's capital and…

Q: What does it mean about credit risk has a “dark side”?

A: Credit risk is the possibility of loss or failure of payment of the loan by the borrower.…

Q: Briefly describe the meaning of financial risks and its major types

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…