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

• Recognize the various uses of collateral and the motivations for providing and taking collateral
• Identify the various forms of collateral that can be used to reduce credit risk exposure

Tutorial Overview This tutorial discusses the use of collateral (or security) as a credit risk mitigant, describing the motivations for collateral usage from the point of view of collateral takers and providers. The tutorial also examines the increasingly important and ever-evolving role of a bank's collateral management function. Finally, the tutorial describes the various types of collateral taken as security and the attractions/drawbacks of each as a credit risk mitigant. Prerequisite Knowledge Credit Risk Mitigation - An Introduction Tutorial Level: Intermediate Tutorial Duration: 60 minutes