Counterparty risk
Counterparty risk or default risk is a risk that a counterparty will not pay as obligated on a contract trade or other transaction
After the failire of lehman brothers in 2008 and the near collapse of banking system in us auk and Europe Counterparty rike analysis has become more and more important to the financial management process of banks and financial institutions
To mitigate Counterparty risk limit management and constant risk measurement are main factors that should be focused