BankingRisk Management

The Big Picture Beyond Banks: A Holistic View of Counterparty Risk

By April 27, 2023No Comments

A good risk management system requires a list of all exposures, according to CFO.University’s Steve Rosvold.

The Silicon Valley Bank crisis raised concerns for many corporates around bank counterparty risk—but counterparty risk goes beyond just banks, as companies are also exposed to the actions of customers, vendors and investors. In order to effectively manage these risks, it is essential for a finance team to adopt a holistic approach that tracks all sources of exposure.

  • That’s one takeaway from an upcoming episode of NeuGroup’s Strategic Finance Lab featuring Steve Rosvold, founder and chief learning officer of CFO.University, a professional community of business leaders, companies and advisors that trains and develops future CFOs.
  • Mr. Rosvold’s career includes nearly two decades in finance at Cargill, before he became CFO of ConAgra Malt.

A broader look at risk. Interest rate hikes and bank failures have sparked what Mr. Rosvold calls a “rude awakening in risk management in general,” as cash has become more expensive and financial institutions less reliable.

  • In a video you can watch by hitting the play button below, he stresses the need for finance organizations to analyze the exposure of “everyone you’re doing business with,” and encourages companies to establish a risk charter.

Justin Jones

Author Justin Jones

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