credit risk – n : finance term; from a lender’s perspective, the degree of risk (i.e., the likelihood, or probability) that a borrower will fail to repay the principal and interest of his/her loan according to the schedule stipulated in the loan agreement. Also used to refer to the borrower itself from a creditor’s (lender’s) perspective (as in, “ABC Corp. is a good credit risk…” or, “Acme Corp. is a poor credit risk…”

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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