When a Financial Analyst Examines the Credit Risk of a Company,it

question 63

Essay

When a financial analyst examines the credit risk of a company,it is common that he or she uses a set of factors that all begin with the letter "C." Each factor provides a consideration that enters into the lending decision.List and discuss how each of the factors affects a company's credit risk.

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Definitions:

Vulnerability

The possibility that an information resource will be harmed by a threat.

Information Resource

Data, information systems, or materials that provide valuable knowledge or facts beneficial for decision-making or problem-solving.

Vulnerability

A weakness or gap in security measures that can be exploited by threats to gain unauthorized access to a system or resource.

Human Error

Mistakes made by people which can lead to unintended outcomes, often analyzed for the purpose of improving systems or practices to prevent recurrence.