# bilateral exposure

- Canonical URL: https://www.gerhardmerk.de/bilateral-exposure
- Post ID: 604186
- Modified: 2026-08-25T12:53:50+00:00
- Language: en

## Definition

Bilateral exposure measures the potential financial loss arising from a specific counterparty relationship if that counterparty does not fulfill its contractual duties. It can apply to lending, trading, settlement and other obligations involving institutions, companies, investors or public-sector entities. The measurement may reflect gross claims or be adjusted for collateral, legally enforceable netting and other permitted offsets, and is useful for evaluating counterparty dependence and concentration.

## Machine-readable

- Generator: Merk Knowledge 1.1.1