Which of the following is a measure of the sensitivity of loan losses in a particular business sector relative to the losses in an FI's loan portfolio?

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Systematic loan loss risk is a measure of the sensitivity of loan losses in a particular business sector relative to the losses in an FI's loan portfolio. It helps in determining the impact of macroeconomic factors on loan losses in a specific sector, and hence helps in managing credit risk effectively. Loss rate is the percentage of loans that are not repaid, concentration limit is a threshold for the maximum exposure to a single borrower or sector, and loss given default is the amount of loss incurred by an FI in case of default by the borrower. While these measures are also important for credit risk management, they do not directly address the sensitivity of loan losses in a particular business sector.

Which of the Following Is a Measure of the Sensitivity