White Paper: Transparency in Treasury Management
A Guide to Counterparty Risk Exposure
Significant global market changes now require corporate treasury departments to re-examine approaches to measuring and mitigating risks. With market volatility, threats to liquidity and counterparty risks along with regulatory pressures, treasury needs increased transparency and independent valuations. This has provoked treasurers to analyze financial risk exposures in new ways. The market recognizes risk, so it demands that risk be measured. Metrics such as Maximum Peak Exposures (MPE) and Credit Value Adjustments (CVA) are becoming required and treasuries need to better understand them.
Table of Contents
- Introduction
- Counterparty risks recognized
- Measuring conterparty credit risk
- The evolving guidance for measuring fair value
- Valuation risk
- Transparency of adjusted valuations
- Transparency and technology
- In search of best practices