Counterparty Risk (FRM Part 2 2023 – Book 2 – Chapter 9)

For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: https://analystprep.com/shop/unlimited-package-for-frm-part-i-part-ii/

*AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams*

After completing this reading you should be able to:
- Describe counterparty risk and differentiate it from lending risk.
- Describe transactions that carry counterparty risk and explain how counterparty risk can arise in each transaction.
- Identify and describe institutions that take on significant counterparty risk.
- Describe credit exposure, credit migration, recovery, mark-to-market, replacement cost, default probability, loss given default and the recovery rate.
- Describe credit value adjustment (CVA) and compare the use of CVA and credit limits in evaluating and mitigating counterparty risk.
- Identify and describe the different ways institutions can quantify, manage and mitigate counterparty risk.
- Identify and explain the costs of an OTC derivative.
- Explain the components of the xVA term.

Видео Counterparty Risk (FRM Part 2 2023 – Book 2 – Chapter 9) канала AnalystPrep