22 February, 2014

3-2-6 analyzing systems: Counterparty risk

People staring highly-interdependent businesses - where they have to participate with other companies of have partners that they don't have control/influence over – usually are the most ones that will deal with this term

"Counterparty Risk" is the risk of someone you're working with not doing what he is supposed to do & how does that impact the system as a whole

What makes this so important is that you don't have control over him, and people tend not to expect or consider any delay or problems happen with these partners  


You have to keep that in mind all the time, watch and keep track of their progress and assess that risk and keep a B-plan in your pocket just in case

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