A junior risk analyst at a consulting firm is evaluating two operational setups for handling derivative trades: bilateral netting and central clearing. The analyst examines the exposures between three companies in the scenario of bilateral trades:

• Company 1's exposure to Company 2: AUD 90 million
• Company 2's exposure to Company 1: AUD 60 million
• Company 1's exposure to Company 3: AUD 12 million
• Company 3's exposure to Company 1: AUD 70 million
• Company 2's exposure to Company 3: AUD 57 million
• Company 3's exposure to Company 2: AUD 0 million