New Telegraph 
Risk management and mitigation to reduce exposure for financial investment, projects, engineering, businesses. Concept with manager’s hand turning knob to low level. Reduction strategy.
The Basel Committee on Banking Supervision on Wednesday issued final guidelines for Counter – party Credit Risk (CCR) management.
According to a press release, the guidelines will replace the Committee’s “Sound practices for banks’ interactions with highly leveraged institutions” published in January 1999.
It stated: “The guidelines include key practices critical to resolving long-standing industry weaknesses in CCR management, including the need to: conduct comprehensive due diligence of counterparties both at initial onboarding and on an ongoing basis; develop a comprehensive credit risk mitigation strategy to effectively manage counterparty exposures; measure, control and limit CCR using a wide variety of complementary metrics; and build a strong CCR governance framework.”
The statement further said: “The guidelines provide a supervisory response to the significant shortcomings that have been identified in banks’ management of CCR, including the lessons learned from recent episodes of non-bank financial intermediary (NBFI) distress.”
