Developing a Comprehensive Credit Risk Management Strategy

As a credit risk manager at a global investment firm, you are required to develop a comprehensive strategy to mitigate credit risk exposure across multiple asset classes, including corporate bonds, sovereign debt, and structured products. Recently, your firm experienced unexpected defaults in its corporate bond portfolio, prompting a review of the existing risk management framework. Your role necessitates both qualitative and quantitative assessments of credit risk, while also addressing regulatory considerations such as Basel III requirements.

Discuss the key elements that should be included in a robust credit risk management strategy. Your response should also outline methods for monitoring and mitigating credit risk, as well as the implications of recent market conditions on these strategies. Support your discussion with relevant risk measurement techniques and examples pertinent to different asset classes.