Price Verification and Profit Analysis
Perform independent price verification by using mark-to-market methodology to verify front office positions and adjust profit and loss reports to reserve for valuation adjustments.
Type
Domain
Competency Area
Investment and Financial Management
Levels
Perform profit and loss analyses on product portfolios
Validate trade bookings to ensure financial market products are recorded in accordance with calculation and accounting policies
Calculate profit and loss positions of product portfolios
Perform mark-to-market profit analysis of product portfolios to realise extent of profit or loss over the statement period
Monitor trade bookings for large and unusual transactions
Perform independent price verification by using mark-to-market methodology to verify front office positions
Review trading activities and make value adjustments
Review trading activities and variance analysis of performance against business unit strategies and plans
Verify the reasonability of rates used for trade booking and reporting
Review identified unusual transactions and escalate for further investigation
Adjust profit and loss reports to reserve for value adjustments
Resolve discrepancies in front office positions and profit and loss reports
Validate the quality of data used for price testing in trade completion processes
Establish frameworks and guidelines for price verification and profit analysis procedures
Establish a priority list of preferred sources of data and assumptions for price verification and profit analysis processes
Establish procedures for unusual transactions to ensure timely resolution and/or escalation to mitigate operational and reputational risk
Establish procedures and guidelines for conducting price verification and profit analysis
Define profit and loss analysis frameworks appropriate for the organisation’s valuation and reporting needs