When a customer is unable or unwilling to pay amounts due, an organization experiences ___ risk.

Question

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When a customer is unable or unwilling to pay amounts due, it indicates credit risk. This type of risk is associated with the potential loss that an organization may face if a customer fails to pay the outstanding balance on time. Market risk refers to the loss that an organization may face due to unforeseen market fluctuations, systems risk pertains to the risk that arises due to the failure of technology or IT systems, and business strategy risk refers to the potential loss that an organization may face due to an incorrect or flawed business strategy.

When a Customer Is Unable or Unwilling to Pay Amounts