Managing Credit Risk standards, techniques, management, best

AnalystForum

Tammi is confident that the techniques she employs to mitigate credit risk are comprehensive and follow industry best practice standards. She drafts a description of the techniques used at Galaxy and includes the following statement: “In keeping with industry standards, our primary means of managing credit risk is requiring that our counterparties post collateral.”

Tammi's statement regarding the management of credit risk is most likely:
A. correct.
B. incorrect, because the primary means of managing credit risk is periodic marking to market.
C. incorrect, because the primary means of managing credit risk is limiting the total exposure to a given counterparty.

former

nopes. Primary means is by reducing exposure to a single counterparty - so C lock!