Credit risk properties

Scope of risk Market risks (toreign exchange credit, commodity) Property or satety risk IT security Market risk Property or safety risks Operational risk IT disruption Easily quantified risks All enterprise risks Business continuity Country risk Key business processes Day-to-day risks Strategic risks Operational resilience Global business environment Organisational or cultural component of risk managemenf... 

The other notable difference between RMBS and CMBS is that the CMBS is a non-recourse loan to the issuer as it is fully secured by the underlying property asset. Consequently, the debt service coverage ratio (DSCR) becomes crucial to evaluating credit risk. 

Taking concentration risks one step further, it is not uncommon for a portfolio to have a single loan that accounts for 10% or more of the overall portfolio. Where this is the case, investors should consider the credit fundamentals of this exposure separately in a manner similar to that used for a single-property transaction. 

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