Specific wrong-way risk

Japanese

個別誤方向リスク

Last reviewed

October 5, 2026

This is a draft, shown for review before publication.

Specific wrong-way risk is the risk that, because of the nature of a transaction, the exposure to a particular counterparty moves in the same direction as that counterparty's PD. It arises, for example, when there is a legal connection between the counterparty and the reference entity.