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Financial institutions are tackling the difficult problems associated with CCR and many are seeking to evolve their risk culture by centralizing the quantification, pricing and management of their CCR.
There are currently many challenges for CVA trading desks, such as the lack of hedging instruments, continually evolving systems and the incorporation of sometimes counter-intuitive measures like DVA and wrong-way risk. To support this new and rapidly developing trading function, organizations must invest in flexible systems that can adapt to incorporate CCR best practices.