Siddique & Hasan, Chapter 4: The Evolution of Stress Testing Counterparty Exposures Practice Question set contains 8 pages covering the following learning objectives:

* Differentiating among current exposure, peak exposure, expected exposure, and expected positive exposure.

* The treatment of counterparty credit risk (CCR) both as a credit risk and as a market risk and its implications for trading activities and risk management for a financial institution.

* Describing a stress test that can be performed on a loan portfolio and on a derivative portfolio.

* Calculating the stressed expected loss, the stress loss for the loan portfolio and the stress loss on a derivative portfolio

* Describing a stress test that can be performed on CVA.

* Calculating the stressed CVA and the stress loss on CVA.

* Calculating the debt value adjustment (DVA) and how stressing DVA enters into aggregating stress tests of CCR.

* The common pitfalls in stress testing CCR.

We have also provided individual links for each question to their respective forum discussion.

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