Objectives On completion of this tutorial, you will be able to:

• Define the concept of credit risk mitigation (CRM) and recognize the benefits of taking mitigation
• Identify the main risks associated with taking mitigation

Tutorial Overview This tutorial introduces the concept of credit risk mitigation and outlines the two broad categories of mitigation - funded and unfunded. The benefits of mitigation are described, and its impact on expected loss is demonstrated. The tutorial also discusses the taking and management of mitigation, the different types of mitigant used, and the various risks associated with credit risk mitigation. Prerequisite Knowledge Credit Risk Measurement - An Introduction Tutorial Level: Intermediate Tutorial Duration: 60 minutes