INMA S1.4.3 Credit risk

(1) Credit risk is the risk of loss resulting from:
(a) default by debtors and other counterparties; and
(b) assets losing value because their credit quality has deteriorated.
(2) If an INMA firm is likely to be exposed to credit risk, its risk management policy should include processes and procedures for identifying, assessing, managing and mitigating that risk.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).