The financial sector stands to see a substantial shift in derivatives risk management, including an increasing focus on the credit value adjustment. FINCAD, the market leader in risk analytics software, has introduced a new webinar designed to highlight some of the tools available for tackling these new analytical challenges.
Hosted by FINCAD's director of analytics, Dr. Tony Webb, and enterprise solutions product manager, Dr. Marc Vlitos, the seminar examines the difficulty of creating a consistent credit value adjustment model across asset classes and the information required to make these systems function.
"With many institutions looking for CVA solutions to address regulations and counterparty credit risk management, it has never been more important to have a flexible framework that can integrate with existing systems and enable proactive management of CVA risk," Webb said in a statement.
Basel III adopts credit value adjustment as a critical tool in counterparty risk management, imposing capital charges based on risk-weighted portfolios. Risk magazine reports that this regulatory push has already spurred a shift in the market, with a growing number of institutions exploring contingent credit default swaps.
◦ Asset Liability Management
◦ Portfolio Risk
◦ Sensitivities & Hedging
◦ Stress Testing & Scenario Analysis