Hello! Credit risk underwriting is a critical process for lenders to assess the default risk of potential borrowers on their loans. It includes an analysis of various factors such as credit history, income, debt level and collateral, if applicable. Lenders use this information to assess a borrower's ability and willingness to repay a loan. They also take into account the borrower's credit score, which gives a summary of their creditworthiness. By carefully evaluating these factors, lenders can make informed decisions and determine terms, interest rates, and loan amounts appropriate to their level of risk.