Countering risk through collateral management

Risk: Where are financial institutions currently focusing their risk management efforts?

Paul Elflain: We are currently seeing all financial institutions undertaking a rigorous assessment of all their risks in business, including market, counterparty, credit, liquidity, legal and operational risk. Valuation risks associated with structured product and non-vanilla over-the-counter (OTC) derivatives are clearly going to be a big focus from here on, but we are also seeing firms placing immense focus on the reduction of counterparty risk. High-profile credit failures, such as that of Lehman Brothers and the economy of Iceland, coupled with the complexity of OTC instruments has meant that counterparty risk has become a daily concern for market participants.

[image] - Countering risk through collateral management (PDF, 68KB)

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here