counterparty risk
[ˈkaʊntərˌpɑrti ˈrɪsk]
nounpl: counterparty risks
risco de contraparte
1. The risk that the other party in a financial transaction will default on their obligations or fail to fulfill their contractual commitments before the final settlement of the transaction
Banks must carefully assess counterparty risk when entering into derivative contracts with other financial institutions.
Os bancos devem avaliar cuidadosamente o risco de contraparte ao celebrar contratos de derivativos com outras instituições financeiras.
2. The potential for financial loss arising from a counterparty's inability or unwillingness to pay or deliver on their obligations
During the 2008 financial crisis, counterparty risk became a major concern as many institutions faced solvency issues.
Durante a crise financeira de 2008, o risco de contraparte tornou-se uma preocupação importante, pois muitas instituições enfrentavam problemas de solvência.
Counterparty risk is a fundamental concept in modern banking and finance, particularly emphasized after the 2008 financial crisis. Brazilian regulators (Banco Central, CVM) and international bodies (Basel Committee, ISDA) have developed strict frameworks to manage this risk. In both Brazilian and American financial markets, understanding and quantifying counterparty risk is essential for risk management, capital adequacy calculations, and regulatory compliance.
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