Kredtrisks

Kredtrisks is a term used in risk management to describe the aggregated credit-related risk exposure of a financial institution or investment portfolio. It covers potential losses arising from borrowers and counterparties failing to meet contractual obligations, as well as changes in credit quality that increase default probability or loss severity. The term is not universally standardized and can vary in definition across institutions, but it is commonly used to emphasize a portfolio-level view of credit risk rather than individual positions.

Key components include default risk, where a borrower defaults; migration or downgrade risk, reflecting changes in credit quality; counterparty risk in trading and settlement; and concentration risk, which grows when exposures cluster in a single borrower, industry, geography, or instrument.

Measurement typically uses models and metrics such as probability of default (PD), loss given default (LGD), and exposure at default (EAD). From these, expected credit loss (ECL) or credit-adjusted pricing can be estimated. Institutions also monitor risk via credit spreads, credit ratings, and stress-testing results, and compute risk-weighted assets under regulatory frameworks.

Management approaches include diversification, credit limits, collateral and guarantees, credit risk transfer instruments, and active monitoring. Stress tests and scenario analyses help assess kredtrisks under adverse conditions, guiding capital planning and risk appetites.

In regulation, kredtrisks interacts with Basel II/III capital requirements and IRB approaches that quantify capital for credit risk and concentrations. The term is commonly used in internal risk discussions and external reporting to convey a unified view of credit exposure beyond individual facilities.