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The most serious risk for a banker who lends money to a company is called "Credit Risk" (Default Risk). This risk means there's a chance that the company they lent money to might not be able to pay it back as agreed.
If the company faces financial troubles, economic problems, or other difficulties, it may not be able to make its loan payments, which could lead to losses for the bank.
Banks work hard to assess the financial health of the companies they lend to and use various methods to reduce this risk, but it's still a big concern for them, as it can affect their own financial stability.
Risk of default. Not being able to service the loan.
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