Spotlight on exposure

Julian Keenan

Counterparty credit risk has become a major issue since the collapse of Lehman Brothers last year, with regulators across the globe urging banks to improve their risk management practices. In August 2008, for instance, the Counterparty Risk Management Policy Group III published a report recommending financial institutions ensure their credit systems can compile detailed market and credit risk exposures across all counterparties within hours.

Many banks have looked to manage counterparty exposure

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