The industry got another huge wake-up call in early 2021, and that is the multi-billion-dollar fiasco resulting from the collapse of the U.S.-based hedge fund firm Archegos Capital Management. For some of the prime brokers that suffered losses from their dealings with Archegos, the root cause was a major failure of counterparty risk management and a lack of proper risk oversight. 

In this white paper, the Numerix Risk Team reveals how the Archegos debacle exposed cracks in banks’ risk systems. Explore key insights including: 

  • How bank losses were, overall, the result of a failure to invest in risk technology.
  • The fact that XVA capabilities were not appropriately engaged to assess and remediate the risks related to Archegos.
  • Significant data quality issues impeded the ability to timely assess counterparty and portfolio credit risk.
  • How an ideal counterparty risk management system should work.
  • Why having the right risk management capabilities in place can make a huge difference in knowing what to do and when.



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