counterparty risk

noun

1. the risk that a person who is a party to a contract will default on their obligations under that contract

Example Sentences

That’s just one example of the substantial counterparty risk surrounding OpenAI, which stretches from the most valuable company in the world to cloud providers to land developers to power companies to gas-turbine manufacturers.

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Moody’s recently warned External link of Oracle’s “counterparty risk,” given that customer concentration.

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"Participation in centrally cleared transactions can significantly reduce this counterparty risk," it said.

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Since then investors across the board have been sharpening their scrutiny of banks and strengthening their cash-management guidelines to plug the gaps exposed in their approach to counterparty risk and liquidity management.

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Managers who miss CLS's cut off will settle bilaterally, losing out on cost efficiency and risk mitigation, while heightening counterparty risk.

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