Published: 13 June 2013
This webcast looks at the considerable changes that the financial industry is undergoing in relation to risk measurement, portfolio valuation, and modeling assumptions as a result of the 2008 crisis. A growing complexity of calculations has emerged and is increasing the demands placed on institutions to correctly value their positions and comply with new regulations.
Increased oversight has led to new regulations with Dodd-Frank and EMIR driving the movement to central clearing to improve market transparency and to mitigate counterparty risk, resulting in an increased focus on collateral management, and implications for curve building.
Counterparty credit risk has also been a critical area within the Basel Committee's reform proposals, with the CVA risk capital charge leading to greater capital requirements for banks. This has led to a proliferation of different approaches for calculating CVA.
As the market and regulations continue to change, the pressure on firms and their systems to accommodate those changes has never been greater.