The recent collapse of several high-profile banks has amplified concerns among money managers and fund directors about counterparty risk. What should advisers and fund directors know about counterparty risk? How can they identify and manage the potential pitfalls, while simultaneously satisfying their oversight responsibilities?

In this episode of the Mutual Fund Minute, host and Sidley partner Jay Baris speaks with Liz Schubert — global co-chair of Sidley’s Derivatives industry group and the founding member of Sidley’s Buy Side Derivatives practice — about the five best steps advisers and funds can take to mitigate counterparty risk, and what fund directors should consider.