Counterparty Risk

In financial risk analysis, counterparty risk is the probability that the one party to an a legal contract, investment, transaction, or credit agreement will not fulfil the terms of the deal and may default on the contractual obligations.


  1. Petro, Louis W., James P. Martin, Adam A. Wadecki, and Harry Cendrowski. The handbook of fraud deterrence. John Wiley & Sons, 2007.