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Personal credit risks...

What is credit risk…
The risk of loss of principal or loss of a financial reward stemming from a borrower's failure to repay a loan or otherwise meet a contractual obligation. Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt. Investors are compensated for assuming credit risk by way of interest payments from the borrower or issuer of a debt obligation.


What is pre-settlement risk
The risk that one party of a contract will fail to meet the terms of the contract and default before the contract's settlement date, prematurely ending the contract.

What is settlement risk
The risk that one party will fail to deliver the terms of a contract with another party at the time of settlement. Settlement risk can be the risk associated with default at settlement and any timing differences in settlement between the two parties. This type of risk can lead to principal risk.


-source investopedia.com

This is not only peculiar to big corporate, businesses & banks but also to our daily lives...Say you give out a lending to someone coz that person is in need of money, but how sure are you that that person will pay you back? If you had an experience dealing with this person and not receiving your money back on time or never getting it back, most of the time we won’t lend out…they can be family ,friends, acquaintances…it all applies…

For me, whenever there is a celebration like a new born, birthdays or a wedding, I normally get the present on shared basis…so that we could buy something big and useful…but there’s a problem when sharing comes into the picture, the collection of $$... some people, even after going after them for payment...ala2 mild version of style ahlong or bank collector, they still don’t pay…! to me…I don’t mind if you tell me when you are able to pay, give me a date so that I can close my books, I am too tired of chasing for money from people (yeah my money!). Sometimes I forget, and that person forgets, and then who is at the lost? Also something I have written off many times & I am sure some of you too..sebab tak reti ask for your own money back…somehow rasa bersalah to ask for money from friends or family…That is why I always emphasize on receiving payment asap or on agreed date…not because I need it or what (well sometimes I do)..but I juz wanna close my books…no confusions later (as I am human and could forget who has paid & who hasn’t..closing the book makes it easier!)…really I’m getting tired of some people’s behavior when it comes to clearing debt…there’s so much easy methods to do it, issue of not meeting up is not a problem as there always online methods like maybank2u, cimbclicks, amonline etc…what’s the problem then? No money..get a credit extension from the borrower…at least that person knows he/she will not be receiving it and make necessary follow-ups later…and what’s with the lender having to follow up, if you owe someone, have the responsibility to pay up before being asked for it lar…

I’m not talking about recent experiences only but all my experiences in this field…I find it annoying that people can behave in this manner. Sometimes I admit I do forget, but I try to minimize it by paying immediately either cash or online transactions…but when someone reminds me…I do it immediately…unlike some people who claim that they are too busy or don’t have the means to do it…if you keep a debt too long is that good? You know that money generates money…it’s not fair to take advantage of a
qardhassan. At times I do have to ask people if they have paid or not, coz I lose the follow-up process and end up at and awkward situation, especially when the person has paid…well sorry peeps sometimes that happens…also when those people that have banked in did not inform…you have to tell and let us confirm payment, else again..confusion!!…sometimes money comes into the account but we don’t know from who…pls tell me so that I can strike off your name from the list (yeah there’s a list now!) huhu

It’s hard enough organizing a gift and finding people to share, the least you could do is respect the organizer and pay up on time or soon…no biggie here…and mind you sometimes the organizer too can be having cash flow problems therefore pay up asap…! Do I need to make myself any clearer? This is not me being petty…it’s taking back what rightfully mine…(some ppl must be saying berkire sungguh shaz nie!) well too bad…I don’t like people taking advantage of me or other lenders…haha!

Another thing about those ppl receiving this shared presents…most of them are costly items, and since its shared, please do not only convey the ‘thank you’ to the organizer alone or the person delivering it...but have the courtesy to send a “thank you” sms/ email or whatever to all those that shared…like that’s simple manners & courtesy…don’t take for granted that people know that your thankful or what…even if you don’t like the gift, what’s wrong with some appreciation huh? People did take the trouble to go get it & organize a sharing scheme…
Bukan tak ikhlas…jangan salah sangka…but it annoys me how some people behaves…

Sorry pada yang terasa….Peace 2010! Sekadar mengingatkan…

I think I’m gonna stop organizing gifts…it’s too much of a hassle & credit risk…lepas nie hadiah kecik2 jer laa from me…or I’ll juz join when someone else initiates & organize… =)

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