Credit risk exposure is risk exposure, which refers to unprotected risk. For example, your income is Japanese yen, but you have a dollar loan to repay, and you have not done any hedging transactions (such as forward foreign exchange transactions or foreign exchange swaps), so you have the exchange rate risk exposure of Japanese yen against the US dollar.

Calculation of credit risk exposure

Risk exposure refers to the balance of credit business that may bear risks due to the debtor's default. Customer risk weights are generally evaluated by external rating agencies according to customer information, and are divided into six grades: 0%, 10%, 20%, 50%, 100% and 150%.

For example, for example:

This is a bank acceptance bill. The credit line is 3 million. Pay 30% deposit for each invoice, and now invoice 2.58 million and repay 900,000. The credit line can be reused for repayment. So the current risk exposure is 654.38+0.56 million.