Broadly speaking, credit risk is the risk that a borrower fails to meet obligations for a loan granted. This risk is of vital importance to banks, as their main business involves lending money to be repaid over a certain period, which in some cases, e.g. mortgages, may be 10 to 20 years or more. The quantification and management of credit risk are radically different from market risk, which focuses mainly on changes in asset prices, and which offers an infinite set of probabilities due to available data. The correct answer is D.