Abstract:

Innovation and transformation in business changes the general outlook of inherent financial sector in the past. The subject of the changes are all business processes in banks, but one of the major segments, which will experience substantial shift, dominant source of revenues, it also represents one of the greatest source of risk. That statement was confirmed mainly in the period of global financial crisis, due to deterioration of creditworthiness of several large financial entities. Since causes of their collapse lied also in huge amount of derivative transactions, it was obvious that counterparty credit risk management was in the center of inefficiency. The main objective of this paper is to point out on numerous challenges for counterparty credit risk closure in banks, especially in times of big data era.