Credit Risk: What it is and Why it matters?

When someone owes you money, you are exposed to Credit Risk – the risk of incurring a loss if the person will not return your money. The same credit risk is applicable when you are in business and deal with various parties.

But, What if the business itself is about lending money such as is the case for banks and NBFCs? In that case, every loan transaction is exposed to credit risk. Have you ever thought about these questions and had trouble evaluating risks associated with such decisions? Then read our featured article, “Credit Risk: What it is and Why it matters” published by CAclubindia.

Original Source: CAclubindia