Counterparty

{
  "id": "MLC-T-INS-000999",
  "term": "Counterparty",
  "field": "Insurance and risk management",
  "definition": "The other party that participates in a financial transaction, such as a derivative contract or a reinsurance agreement. Each party to the transaction is exposed to the risk that the other will not fulfill its contractual obligations. This exposure is known as counterparty risk, which is the primary credit risk associated with over-the-counter derivatives and reinsurance arrangements.",
  "url": "https://mlchart.com/terminology/insurance/counterparty/"
}