Which one of the following four statements correctly defines credit risk?

Which one of the following four statements correctly defines credit risk?
A . Credit risk is the risk that complements market and liquidity risks.
B . Credit risk is a form of performance risk in contractual relationship.
C . Credit risk is the risk arising from execution of a company’s strategy.
D . Credit risk is the risk that summarizes the exposures a company or firm assumes when it attempts to operate within a given field or industry.

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Answer: B