Conversely, the rapid implementation of Ukraine's recovery project, together with European integration reforms, could considerably accelerate the pace of economic growth and reduce inflation at a faster rate.
Managers of counterparty credit risk face still more challenges when considering tail events. Counterparties may be downgraded in ordinary times, and firms are familiar with the management of this risk. But when contemplating more-unusual movements of asset prices, a firm must also consider the degree of correlation between default probabilities and exposures at default as well as the possibility of multiple, correlated downgrades.