Posts: 7
Joined: Sat Jan 11, 2014 2:11 pm


Postby kaushalya.narendran » Sat Apr 05, 2014 3:04 pm

Please explain the concepts of:

i) Pipeline Risk
ii) Contingent Risk
iii) Wrong-way Risk

Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm


Postby pradeeppdy » Mon Apr 07, 2014 5:26 am

Pipeline Risk : A loan commitment made at a certain interest rate by the lender of the risk , He also fears that interest rate might increase before the loan is paid out.
Contingent Risk : It is a risk that is contingent upon happening a certain negative event or incident . A reserve is set aside to meet any contingency related to it.
Wrong-way Risk : When there is negetive correlation between the exposure to other party and credit quality of the that party , the wrong way risk arises . There are two types of wrong way risks Specific wrong way risks and Conjectural wrong way risk .

Return to “FRM Part I”


Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.