Once an institution has estimated its counterparty credit risk exposure, it must decide on the best method for managing this risk. A variety of risk management tools and techniques are available. This course describes some of these, focusing on both settlement risk and pre-settlement risk. It also looks at how a CVA desk works and how it charges for its services. Finally, capital adequacy requirements and the regulatory perspective relating to CCR are examined.
Prior to completing this course it is recommended you undertake:
- Counterparty Credit Risk (CCR) - Measurement
This online course forms part of the Intuition short course suite.
Learning objectives
- Describe the different tools and techniques used to manage CCR
- Explain the role of the CVA desk in CCR management
- Outline capital and regulatory perspectives in relation to CCR
