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Finance & Accounting

Risk Rating Glossary

Terms for scoring and grading the credit risk of borrowers and customers.

5 terms · Updated 12 November 2026

C1 term

Credit Score

A number summarizing how likely a borrower is to repay.

D1 term

Default

Failure to repay a loan or dues as agreed.

E1 term

Exposure

The total amount at risk if a borrower fails to pay.

R2 terms

Rating Model

The set of factors and weights used to calculate a risk rating.

Risk Grade

A category such as low, medium or high assigned from the score.

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