How counterparty credit risk management techniques have evolved

Since the collapse of Lehman Brothers in September 2008, counterparty credit risk management has assumed critical importance at both sell-side and buy-side institutions.

The failure of Lehman Brothers and near failure of several other major financial institutions have highlighted the need for more robust counterparty risk management procedures. It is no surprise, then, that financial institutions across the board are committing resources to improve internal processes and systems in this area.


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