Credit Risk Overview: Expected and Unexpected Loss
Interactive

Credit Risk Overview: Expected and Unexpected Loss

Intuition Publishing Pty Ltd
Updated Sep 25, 2020

Expected loss (EL) can be used to help understand and manage credit risk. Here we describe the concept of EL and unexpected loss (UL). We explain how to calculate the EL of a credit portfolio. The benefits and drawbacks associated with using EL are also discussed.

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