settlement risk

What is settlement risk?

settlement risk definition and meaning on Finance terms:
The risk that settlement in a transfer system will not take place as expected, usually owing to a party defaulting on one or more settlement obligations. This risk includes, in particular, operational risks, credit risks and liquidity risks. See also
credit risk
liquidity risk
operational risk<

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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