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English definition of “credit risk”

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credit risk

noun uk   us  
[C or U] a calculation of how likely it is that a person or company will not be able to pay back money they have borrowed from a bank or other organization: The system assesses the credit risk of new borrowers. corporate bonds with little credit risk/efforts to reduce credit risk [C] If a person or an organization is a credit risk, it is likely that they may not be able to pay back money that they have borrowed from a bank or other organization: Even if you are considered a bad credit risk, there are still a few options available to you for borrowing money.
(Definition of credit risk from the Cambridge Advanced Learners Dictionary & Thesaurus © Cambridge University Press)
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