Counterparty Risk Management Workflows: Challenges & Trends

August 23, 2011
  • Trends Pre and Post CVA desks
  • The impact of the Dodd-Frank and EMIR regulations

London and New York (23rd August 2011) - Quantifi, David Kelly, Director of Credit Products at Quantifi, a leading provider of analytics, trading and risk management, explores the challenges and trends in counterparty risk management by tracing typical workflows within a global bank before and after the advent of CVA desks, and how increased clearing affects these workflows.

CVA pricing and counterparty risk management workflows require extensive amounts of data, as well as a scalable, high-performance technology infrastructure. Whilst the most sophisticated global banks have implemented CVA desks and clearing workflows, along with supporting technology infrastructures, it is expected that regional banks will follow suit over the next few years in order to manage risk more effectively and comply with new regulations.

In a recent video, available on Quantifi’s website, David Kelly highlights:

  • why banks are implementing CVA desks
  • where CVA desks fit into the bank’s risk architecture
  • impact of clearing and new regulatory requirements, and
  • where banks currently stand and best practices



"Counterparty risk management will continue to be a top priority for banks and regulators over the next few years."

David Kelly, Director of Credit Products at Quantifi


Kelly comments “counterparty risk management will continue to be a top priority for banks and regulators over the next few years. Most banks are either in the process of setting up or expanding the role of CVA trading desks to more actively manage counterparty risk. Furthermore, as more derivative transactions are cleared, there will be further improvements in operational and liquidity management processes. Due to the complexity, institutions are increasingly looking to vendors for solutions.”

Quantifi’s offering in this space, Quantifi Counterparty Risk, is a high-performance platform for managing counterparty credit and market risk that is flexible, scalable, rapid to implement, and intuitive to use. Incorporating high-performance, multi-factor Monte Carlo simulation, coupled with our powerful grid computing architecture, Quantifi Counterparty Risk can support even the largest most complex portfolios, including those with significant wrong-way risk or volatility.

To view the video ‘Trends in Counterparty Risk Management Workflows’ visit: