Approaches to Managing Counterparty Risk 2016

Counterparty credit risk has steadily become one of the most important risks for banks and other financial institutions to understand and quantify. There have been a number of regulatory and market developments imposed by supervisory institutions designed to ensure financial stability and fundamentally changed the way in which counterparty credit risk is managed, and there are many others still to be adopted including the Standardised Approach to Counterparty Credit Risk (SA-CCR), published by the Basel Committee in March 2014.