Risks Of Taking A Credit
From Open Risk Manual
Definition
Risks Of Taking A Credit. In the context of the Financial Competence Framework, Risks Of Taking A Credit is a topic in the Planning And Managing Finances subject matter domain.[1]
Competences
Mastering the role of Risks Of Taking A Credit in financial literacy context requires the following competences:
| Code | Competency Description | Competency Type |
|---|---|---|
| 298 | Aware of the potential negative consequences of borrowing to meet a shortfall in current income | Knowledge |
| 299 | Understands the risks and benefits of using different kinds of credit providers (both formal and informal) | Knowledge |
| 300 | Aware of the specific issues of taking credit in a foreign currency | Knowledge |
| 301 | Aware of the risks of repeat use of rotating credit facilities | Knowledge |
| 302 | Aware of the risk of foreclosure in case the mortgage is not paid off | Knowledge |
| 303 | Assesses the risks, benefits and potential consequences of using a particular credit provider | Skill |
References
- ↑ European Union/OECD (2022), Financial competence framework for adults in the European Union
