term exposure expected help what is
Meaning of expected exposure. What is it: free external line of committed credit that is expected.

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Definition expected exposure

EXPECTED EXPOSURE title: expected exposure (IS-B-RA-CL) (SAP Library - Glossary)
EXPECTED EXPOSURE category: Default Risk and Limit System (IS-B-RA-CL)
EXPECTED EXPOSURE explained:

Current utilizatin, including the part of a potentially free external line of committed credit that is expected to be used as the time the default occurs.

The proprotionate attribution of the free limit results from the product of the free line and the loss equivalent.

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