The risk that exposure to a counterparty rises just as its credit quality falls. It makes losses on default worse than independent estimates suggest. Where it appears →
Learn these terms in context, with worked examples and questions.
GARP does not endorse, promote, review, or warrant the accuracy of the products or services offered by Charta Learning, nor does it endorse any pass rates claimed by Charta Learning. Further, GARP is not responsible for any fees or costs paid by the user to Charta Learning. FRM® and GARP® are registered trademarks owned by the Global Association of Risk Professionals, Inc. The questions, explanations and study notes are written for this product and are not GARP curriculum material.