Counter Party Risk Counter party risk is something most people don’t really think about. Before we get into it, perhaps we should begin with a brief definition. “Counter party risk is the likelihood that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations. It is the probability of nonperformance by the entity on the opposite side of any financial transaction from you, be it a trade, contract, credit or other financial relationship.” This is no small thing. It is w...