What is another word for credit risk?
Pronunciation: [kɹˈɛdɪt ɹˈɪsk] (IPA) 
Credit risk is the possibility of losing the principal or interest owed to a lender due to a borrower's default. There are several synonyms for credit risk, including counterparty risk, default risk, or creditworthiness risk. Counterparty risk refers to the possibility of losing money in a financial transaction if the other party defaults on their obligations. Default risk is the chance of not being able to repay loan obligations or make interest payments on time. Creditworthiness risk refers to the borrower's ability to repay the loan based on their credit ratings, financial history, and other factors. By identifying and assessing credit risk, lenders can better manage their lending portfolios and minimize their potential losses.
