What exactly is collateral danger; and just why can I worry about it?
Geary Sikich talks about the niche of security danger and shows how a concept can be utilized in risk administration processes.
Regulations Dictionary defines risk that is collateral:
The possibility of loss as a result of mistakes when you look at the nature, volume, prices, or traits of security securing a deal with credit danger. Institutions that actively accept and deliver collateral as they are not able to handle the method accurately are prone to loss. A subcategory of procedure danger.