Purchased Receivables Risk This dimension categorises reported information relating to purchased receivables based on the applicable type of risk the exposure is subject to. Default Risk The information reported relates to the default risk associated with purchased receivables. Default risk represents the lender's economic loss upon the default of an obligor. Dilution Risk The information reported relates to the dilution risk associated with purchased receivables. Dilution risk represents the possibility that the total amount of the receivable is reduced through cash or non cash credits to the receivables' obligors. Examples include offsets or allowances arising from returns of goods sold, disputes regarding product quality, possible debts of the obligor to obligors of the purchased receivables and any payment or promotional discounts offered by the obligor.