Counterparty Credit Risk Management Mastery
Master the intricacies of Counterparty Credit Risk Management with this comprehensive course.What you'll learn
- Fundamentals of Counterparty Credit Risk: Gain a strong foundation in the basic principles and concepts of counterparty credit risk management.
- Financial Risk Management Techniques: Explore various financial risk management strategies and techniques employed in real-world scenarios.
- Components and Terminology: Understand the key components and terminology associated with counterparty credit risk, essential for effective risk assessment.
- Quantifying Credit Exposure: Learn methods to quantify credit exposure, including metrics for Credit Exposure (EE & EPE).
- Mitigation Strategies: Explore strategies to mitigate counterparty risk, focusing on controlling and reducing credit risk effectively.
- Collateral Management: Understand the role of collateral in credit risk, including types of collateral and its impact on risk mitigation.
- Credit Default Swaps (CDS): Dive into the details of credit default swaps, understanding their structure, uses, and risk factors.
- Pricing and Valuation: Learn practical formulas for pricing counterparty credit risk, exploring new trade pricing and the impact of credit risk on valuation.
- Regulatory Frameworks: Familiarize yourself with regulatory frameworks such as Basel II, Advanced IRB Approach, and Exposure at Default.
- Trading Desk Approaches: Understand the trading desk approach, its continuation, and methods for charging counterparty risk effectively.
- Role of Central Counterparties (CCPs): Explore the role and significance of Central Counterparties in mitigating counterparty credit risk
- Risk Management Applications: Delve into practical applications of risk management, including portfolio models, economic capital, and insurance approaches.
- Drift and Loss Distribution: Comprehend the concepts of drift, loss distribution, unexpected loss, and how these factors influence risk management decisions.
- Strategies for Risk Hedging: Explore effective strategies for hedging risky mark-to-market (MtM) positions and managing gap risk.
- Current Industry Practices: Gain insights into current industry practices for managing counterparty credit risk in financial institutions.
- By the end of this course, students will have acquired a comprehensive skill set in counterparty credit risk management
