Non-payment risk is a type of financial risk that occurs when a borrower fails to make payments on a loan or other debt obligation. The term REPO is an acronym for 'repurchase agreement, ' which is a type of financial transaction in which a borrower agrees to sell an asset to a lender and then repurchase it at a later date. This type of transaction is often used to manage non-payment risk, as the lender can repossess the asset if the borrower fails to make payments.