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

• Recognize how tools and techniques such as netting, portfolio compression, and collateralization can be used to manage CCR
• Identify the crucial role played by central counterparties (CCPs) when it comes to managing CCR in the market
• Identify the key components of bank's CCR risk management framework and the role played by CVA desks

Tutorial Overview Once a bank has measured its CCR exposure, it must decide on the best method for managing this risk. A variety of risk management tools and techniques are available for such purposes, including netting, portfolio/trade compression, collateralization, termination, hedging, and limits. This tutorial examines all of these techniques, in addition to describing how CCPs work in today's market and the risks associated with them. The tutorial also looks at the role of bank's CVA desk in managing CCR, CVA, and other risks and how it uses a transfer pricing model to charge for its services. Prerequisite Knowledge Counterparty Credit Risk (CCR) - Measurement Tutorial Level: Advanced Tutorial Duration: 75 minutes