term loss expected help what is
Meaning of expected loss. What is it: negative change in the credit standing of a business partner.

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Definition expected loss

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

Estimate for the amount that could be lost due to a negative change in the credit standing of a business partner or country within the time period under examination.

Expected losses are not risks, but are foreseeable costs of a normal transaction that reduce the expected yield.

Expected loss = net exposure x EDF x (1-RR)

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