Credit Valuation Adjustment Target Operating Model
InteDelta's Credit Valuation Adjustment (CVA) Target Operating Model offering is a structured and proven method for designing a process for active counterparty risk management and credit charging within financial institutions. Our consultants use their subject matter expertise of CVA to define best practice CVA infrastructure, fully considering organisation, business process and systems infrastructure.
The recent financial markets crisis and, in particular, the increase in counterparty defaults across all market segments, has led to a heightened focus on counterparty risks within financial institutions.
This, together with changes to accounting standards requiring pro-active reserving for expected counterparty risk exposures, is driving banks to move from purely passive assessment of counterparty risks to active counterparty risk management from the point of pre-trade credit charging through to daily reserving and hedging of exposures.
Our approach to the CVA Target Operating Model review involves the following stages:
- Organisation and governance review
- Business process and methodology review
- Short term and strategic recommendations
- Target operating model and architecture definition
- Implementation plan
For further information please click the link below:
