While the statue of limitations for a personal injury case is two years, the time limit is different for different causes of actions. Because the Statute of Limitations is so critical, most law offices will have two methods of checking to see that the statute of limitations is protected in any case.
DEFINITION of '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.redit 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.
DEFINITION of 'Systemic Risk'. The possibility that an event at the company level could trigger severe instability or collapse an entire industry or economy. Systemic risk was a major contributor to the financial crisis of 2008. Companies considered a systemic risk are called âtoo big to fail.â These institutions are very large relative to their respective industries or make up a significant part of the overall economy. A company that is highly interconnected with others is also a source of systemic risk.