AUTHORIZATION RISK

The RISK of loss that occurs when an employee or AGENT of a company commits the firm to a legally binding, but unauthorized, transaction; in most instances the firm will be required to perform as contracted. A subcategory of PROCESS RISK.

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Related Legal Terms
COLLATERAL RISK, REGULATORY COMPLIANCE RISK, BUSINESS RECOVERY RISK, DIRECT CREDIT RISK, PASSAGE OF RISK, LETTER OF AUTHORIZATION, AUTHORIZATION CODE, ASSET LIQUIDITY RISK, COUNTRY RISK, DISASTER RECOVERY RISK


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