The risk that arises from the failure of parties to complete and resolve a transaction is called:

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Settlement risk, also known as delivery risk or funding risk, is the risk that one party involved in a transaction may fail to deliver the agreed-upon asset or payment, causing the other party to suffer losses. This risk arises particularly in transactions that involve cross-border or multi-currency settlements. Herstatt risk is a specific form of settlement risk that arises in foreign exchange transactions, especially between different time zones. Default risk refers to the risk that a borrower or issuer may fail to meet its obligations under a loan or bond agreement. Market risk refers to the risk of losses resulting from movements in market prices, such as interest rates, exchange rates, or stock prices.

The Risk That Arises from the Failure of Parties to Complete