consolidated risk

How the Credit Crisis Has Changed Counterparty Risk Management

Monday, January 25, 2016

by Quantifi

The credit crisis and regulatory responses have forced banks to substantially update their counterparty risk management processes. New regulations in the form of Basel III, Dodd-Frank and European Market Infrastructure Regulation (EMIR) have dramatically increased capital requirements for counterparty credit risk. In addition to implementing new regulatory requirements, banks are making significant changes to internal counterparty risk management practices. This whitepaper explores some of the key changes to internal counterparty risk management processes by tracing typical workflows within banks before and after CVA desks, and how increased clearing due to regulatory mandates affects these workflows.