Simplify Counterparty Risk

1 min read

September brought us a new war, escalating Russian sanctions, renewed equity volatility and a close call on the Scottish succession; all certainly a reminder of the complexities and challenges that can arise at any moment. As the month unfolded, we started fielding questions on the credit impact of these events, which financial institutions would be impacted, and how? A bigger question we have for the treasury community is how are these events, as well as any future surprises, managed within their firms as exposures evolve? Depending on the event and the size of the organization, tracking and managing the impact can be very complex, as we all learned during the 4th quarter of 2008. We believe, however, best practices for counterparty risk management can go a long way in making the complex simple.

Early next month, Treasury professionals from around the country will gather in Washington for the annual AFP conference to explore best practices and discuss the challenges common in the industry. As a thought leader on risk management and counterparty risk, our team looks forward to the event, not only to engage questions at our booth, but to elevate the conversation around counterparty risk management and how best practices can help to simplify what can be a complex issue. To start the conversation, this month’s research looks at credit analysis and its role as the backbone of counterparty risk management. We believe that counterparty risk is ultimately credit risk, and the task of managing counterparty risk is not complete without a solid understanding of credit.

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Best Regards,

Ben Campbell
President & CEO

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