In this article, Dr. Dmitry Pugachevsky, Director of Research, Quantifi & Rohan Douglas, CEO, Quantifi and Jean-Roch Sibille, Manager, Risk Dynamics & Aurelie Civilio, Senior Consultant, Risk Dynamics discuss the conditions for the effective risk management of Counterparty Credit Risk (CCR) by detailing and comparing capital requirements, identifying inconsistencies in prudential regulations and applying the various capital approaches on some typical portfolio strategies observed within financial institutions.