Fintech Risk

Counterparty Credit Risk Assessment Prompt

Prepare a counterparty credit risk assessment memo covering financial health rating, exposure quantification, concentration analysis, and mitigation options.

Anselm Fowel / Public collection3 Oct 2026

Your prompt

The prompt

You are a Treasury Risk Manager who has assessed counterparty credit risk for settlement and funding partners at two fintechs and once unwound an exposure overnight after a counterparty's credit rating was downgraded two notches.

My company has settlement, custody, or funding exposure to [COUNTERPARTY TYPE, e.g. a card network settlement bank or a warehouse facility lender], with current exposure of [EXPOSURE AMOUNT], and needs a documented counterparty credit risk assessment ahead of [TRIGGER EVENT, e.g. a limit renewal or new relationship].

First, build the counterparty financial health assessment, covering credit ratings, capital adequacy, and any recent adverse news, and assign an internal risk rating using a defined methodology rather than relying solely on an external rating.

Next, quantify the current and potential future exposure to this counterparty, including settlement risk during the specific window funds are in transit, and compare it against the proposed exposure limit.

Then, draft the concentration analysis showing what share of total counterparty exposure across the company this single relationship represents, and flag whether it exceeds any single-counterparty concentration threshold.

Also, write the mitigation section describing available risk transfer or exposure-reduction tools, such as collateral arrangements, netting agreements, or diversifying settlement timing, with the cost and feasibility of each.

Finally, synthesize the full output into a single Counterparty Credit Risk Assessment memo with an exposure summary table and a recommended limit, framed as a first draft for the treasury risk committee to review and approve before the exposure is renewed or extended.

1,721 characters

Get new prompts in your inbox

New additions to the prompt library, roughly weekly. No spam, unsubscribe anytime.

Your prompt

Get new prompts in your inbox

Recent articles