# Risk of loss

- Canonical URL: https://www.gerhardmerk.de/risk-of-loss
- Post ID: 591311
- Modified: 2023-07-25T21:13:54+00:00
- Language: en

## Definition

Expression for the probability with which the assets of an investor - for example: 100 EUR - fall below a certain value (threshold value) after a certain time - for example: 24 months. - The default risk is usually highest for a stock portfolio; for a savings account, the default risk is zero percent because the savings interest rate is always positive under normal circumstances. - In a contractual relationship, the risk that the counterparty will default on an obligation, sometimes called counterparty risk. - See bond spread, credit risk, credit extension, group of connected customers, nodal point, credit, short-term, negative interest rate, renationalization, loss rate. - Cf. ECB Monthly Bulletin, January 2005, p. 56 f., BaFin Annual Report 2006, p. 70 (obligation of institutions to determine default risk). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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