Bad Risk

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 ?
They shouldn't be thought of as a good or bad risk.
Simply put, the traders believe Italy is now a fiscal mess and a bad risk.
The people best able to pre-judge the viability of such projects as this are the financiers themselves, and they, we observe, clearly think it is a bad risk since they will not invest.
Until managers change the system, "we're going to find ourselves in a premium spiral that's going to continue to drive rates up, and good risk out, and ultimately create a very bad risk pool," Bertolini said.
The offshore wind industry is still seeing many examples of both good and bad risk management.
In November, the Treasury sold PS13 billion of Northern Rock mortgages formerly thought of as a bad risk to US investment firm Cerberus Capital Management, in what is described as the largest ever financial asset sale by a European government.
Those customers fall into two categories--someone new to credit, such as college students, and someone with bad credit history but not necessarily a bad risk currently.
This hope, says Travelers, is bad risk management, and companies need to shore up their insurance to cover the very real threat of cyber attacks.
Handing out a loan to a high-up party member without sufficient guarantees of getting it back may be bad risk management, but it can be arguably within the letter of the law, if not its spirit.
It is wrong to assume that all Chinese shadow banking assets are of the same bad risk quality that will cause a negative systemic shock sooner or later.
FICO is a really bad risk assessment tool, so how do we come up with new models?