What is meant by settlement risk in context of credit risk

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Problem 1: What is meant by 'settlement risk' in the context of credit risk management?

A. It is the uncertainty about the amount recovered in any settlement of a bad debt by a lender.

B. It is the risk that transactions processed through third parties fail to be completed on time.

C. It is the uncertainty surrounding what is the true expected loss for a particular type or class of exposure.

D. It is the tendency of a firm in a particular credit class to change class over time.

Reference no: EM132917812

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