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Finance · Risk Management

Netting

Noun
US US /ˈnetɪŋ/ GB UK /ˈnetɪŋ/
Finance Risk Management advanced

Definition

Offsetting multiple financial obligations to create a single net payment.

Visual Reference

Netting illustration

Detailed Explanation

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Example

Risk officers use Netting to identify, quantify, and mitigate financial exposure.

In Practice

Also known as: Offset Settlement, Net Settlement. Closely related to Settlement, Derivatives.

Video Explanation

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Case Study

Netting - key concept in Risk Management.

Word Usage

Derivatives clearing; Banking; Risk reduction

Finance Risk Management

Use Case

Applied in Risk Management contexts: Derivatives clearing; Banking

Also Known As

risk-management

Synonyms

Offset SettlementNet Settlement

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