Volume 4 — Credit Risk Management © Copyright 2002, CCRO. All rights reserved. List of Figures Figure 1. Current Exposure and Potential Exposure ....................................................................... 13 Figure 2. Loss Distribution................................................................................................................. 15 Figure 3. Exposure without Multilateral Netting ............................................................................. 26 Figure 4. Exposure with Multilateral Netting .................................................................................. 27 Figure 5. Simulation of Guaranty Exposure for Bilateral and Multilateral Netting ...................... 28 Figure 6. Cumulative Probability Distribution of Exposure Reduction with Multilateral Netting ...................................................................................................................................................... 28 List of Tables Table 1. Financial Metrics for Establishing Credit Limits..................................................................5 Table 2. Methods for Managing Credit Risk Exposure.................................................................... 22