Collateral Management
Reduce risk by reviewing collateral documentation for completeness and validity, performing collateral valuation and margin call calculations and resolving reconciliation breaks
Type
Domain
Competency Area
Investment and Financial Management
Levels
Manage collateral documentations for record keeping and compliance
Assess collateral counterparties using external ratings and internal organisational guidelines
Review validity and completeness of collateral documentation for the relevant products at various stages of the collateral life cycle
Calculate average price, price allocation, variation margin and initial margin where applicable for the various types of collateral
Gather responses from, counterparties or other relevant parties to ensure timely and appropriate settlement of margin requirements
Perform relevant collateral reconciliations
Resolve breaks to manage the associated risks
Conduct checking, valuing and reconciliation of portfolios
Identify portfolio exceptions and breaks to conduct resolution activities
Identify relevant general ledger and sub-ledger accounts used in product accounting for key transactions
Recognise triggers that are used for monitoring and escalating unreconciled items and exceptions and/or breaks
Valuation of collateral and resolve reconciliation break
Perform valuation of collateral and margin call calculations
Issue the margin calls in an accurate manner to the respective parties
Ensure collateral agreement terms reflect the appetite for counterparty risk and limits
Ensure portfolios are checked, valued and reconciled on a regular basis to ensure collateral management data is current and valid
Determine triggers for identifying exceptions
Prioritise the resolution and assess their impact to the business
Prepare collateral-related control and management reports and escalate exceptions for corrective actions
Perform relevant collateral reconciliations and resolve breaks to manage the associated risks
Articulate identification of differences in valuation methods
Identify common issues in the reports and provide appropriate commentary explaining impacts and causes
Manage risks relating to reconciliation breaks
Advise credit team, risk team or relevant stakeholders on relevant laws and regulations and international guidelines
Ensure acceptability based on organisational risk management perspective before accepting new collateral
Determine minimum maintenance margin requirements for strategic alignment
Endorse corrective actions for detected exceptions
Develop investigation approaches and corrective actions for collateral exceptions/breaks and unresolved disputes
Determine service level agreement with stakeholders for corrective actions to address reconciliation breaks relating to collateral
Formulate plans to resolve disputes relating to reconciliation and reporting collateral exceptions/breaks