must read article...., page-20

Prudent risk management will need to consider the sector and then the market as a whole. Is not a question of an exposure to Centro but CBA total risk exposures to the property sector and to the market. Adverse exposures to other companies will inevitability affect the ability for CBA to service CNP. I think the problem points to CBA rather than Centro.

Another consideration for CBA is a single exposure to CNP versus multiple exposures to different companies for the same loan amount. Obviously, the risk for a single exposure is higher than 10 exposures for the same amount because the probability of 10 companies failing is less.