Bad Risk

(redirected from Bad Risks)

Bad Risk

1. A loan that is unlikely to be repaid because of bad credit history, insufficient income, or some other reason. A bad risk increases the risk to the lender and the likelihood of default on the part of the borrower.

2. A person or company to whom lending would create bad risk.
References in periodicals archive ?
That is what the insurance industry calls adverse selection: The good risks go away, and they're left with more and more bad risks.
As more complex and commonplace commerce becomes a growing component of the online experience, it is increasingly difficult to uncover and deny bad risks," said Chris Cuddy, General Manager of Online Business at Lightbridge.
Managers who take on bad risks are typically fired or demoted; those who take on good risks are retained and promoted.
Insurers may accept bad risks at inadequate rates without reinsuring the business.
This compromises data integrity, increases risk for lenders and will lead to a rise in the default rate, as credit is advanced to people who later turn out to be demonstrably bad risks.
Chubb led the pack in raising commercial insurance rates and dumping bad risks, taking a stand in 1999 that has caused rates, as of October 2000, to rise 20.
I have watched the deficits soar and good risks subsidize bad risks.
Dean O'Hare, chairman and chief executive officer of Chubb, says his company is focused on dumping bad risks and considering further price increases as a way to improve profitability.
At the next Turnaround Management Association webinar, lenders will discuss the state of middle-market financing, including sources and availability of capital, and options for companies that may only appear to be bad risks because of current market conditions.
Existence of a Nash equilibrium requires a sufficient proportion of bad risks.
Using the factor, that carrier will presumably rate good risks more competitively and bad risks less competitively than the market in general
Over time, you can have best-of-best rates for best-of-best risks, and they're not picking up any of the bad risks because their rate for bad risks would be so high.