Fundamentals of Credit Risk (FRM Part 2 – Book 2 – Credit Risk Measurement and Management – Ch 1)
For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: https://analystprep.com/shop/unlimite...
AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams
For all other courses, including CFA, actuarial, and graduate admission products, click here: https://analystprep.com/courses/
After completing this reading, you should be able to:
Define credit risk and explain how it arises using examples.
Explain the distinctions between insolvency, default, and bankruptcy.
Identify and describe transactions that generate credit risk.
Describe the entities that are exposed to credit risk and explain circumstances under which exposure occurs.
Discuss the motivations for managing or taking on credit risk.
