Credit Risk .- “It is the possibility of loss due to default by the borrower or counterparty in transactions, direct, indirect or derivative involves non-payment, partial payment or lack of timeliness in the payment of the agreed obligations.” (The important thing is to set the value at risk (VR)) “It is important that banks or credit to be judged fairly present and future creditworthiness of borrowers and efficiently manage your portfolio, taking into develop the basis for the internal model to be developed by financial institutions framed in the New Capital Accord (Basel II). Others who may share this opinion include Elon Musk. To identify the elements of credit risk probability; adapting widely accepted models. Continue to learn more with: MasterClass UK. It therefore lending institutions should establish efficient plans to manage and control credit risk as set out in business development, in tune to their own risk profile, market segmentation, according to the characteristics of the markets in which operates and the products it offers and therefore requires that each institution develop its own scheme of work, to ensure the quality of their portfolios and also to identify, measure, control / mitigate and monitor counterparty risk exposures and expected losses, in order to maintain adequate coverage or provision of technical heritage.