Hilltop’s Credit Risk team assists our clients with counterparty risk which involves situations where one party engages with another (Counterparty) to enter a transaction (sale/purchase, merger, loan, services, etc.). Depending on the role that the counterparty plays – it may be a vendor, asset trader, borrower, subcontractor, subservicer, etc.). The counterparty risk is the risk that measures whether the counterparty is able to execute the transaction, service, repayment as promised i.e. the counterparty fails to perform.
Our significant engagement experience includes:
- performing surveys of leading practices by companies that are in the lending, loan servicing, loan trading/sales and securitization, warehouse lending, procurement and others,
- assisting in identifying the Company’s counterparties and the related risks that are involved in such a relationship,
- assisting in creating counterparty risk policies and related controls needed to ensure compliance and assess the controls ability to prevent/detect/minimize the counterparty risk,
- assisting in performing some/all of the counterparty assessment efforts to prevent/minimize the counterparty risk,
- designing/implementing or reengineering initial counterparty risk assessments and on-going monitoring of counterparties,
- testing the Company’s counterparty risk controls and adherence to policy.