# Counterparty Risk
In financial risk analysis, *counterparty risk* is the probability that the one party to an a legal contract, investment, transaction, or credit agreement will not fulfil the terms of the deal and may default on the contractual obligations.

## References
1. Petro, Louis W., James P. Martin, Adam A. Wadecki, and Harry Cendrowski. The handbook of fraud deterrence. John Wiley & Sons, 2007.