We have entered a new era for counterparty risk. Continued COVID-19 related pressures are expected to lead to defaults around the world, especially for small- and medium-sized enterprises that have felt the burden more than larger companies that have better access to credit. Adding to this, the pandemic has brought environmental, social, and governance risks to the forefront, as well as the deep linkages that exist between businesses and their stakeholders across value chains. The growing complexity posed by these intersecting risks calls for a sharp focus on counterparty assessments, underscoring the need for deep and timely data and robust analytical tools.
Read our guide for the five steps credit risk professionals typically take to protect their organization from counterparty losses, some of the challenges they face, and several ways to address these challenges.
A Guide to Minimizing Counterparty Risk