Reverse leg and Risk register: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Create page. Source: Closing leg page.)
 
imported>Doug Williamson
(Layout.)
 
Line 1: Line 1:
''Repurchase agreements''
''Risk management''


A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.
A table or other appropriate structure used to facilitate the description and assessment of risks.  


The second trade reverses the initial sale and purchase, but at a later date and different price.
The use of a well designed structure is necessary to ensure a comprehensive assessment process.  


Strategy/objectives should also feature to identify function responsible for developing strategy and policy.


The reverse leg is the second trade in the repo.
By considering the consequence and probability of each of the risks, it should be possible to prioritise the key risks that need to be analysed in more detail.  


It is also known as the closing, off, far, or second leg.


== See also ==
* [[Risk appetite]]
* [[Guide to risk management]]
* [[Risk tolerance]]


== See also ==
* [[Far leg]]
* [[Opening leg]]
* [[Repo rate]]
* [[Repurchase agreement]]


===Other links===
[http://www.workinginuncertainty.co.uk/ Working In Uncertainty - A better perspective on risk management and internal control], www.workinginuncertainty.co.uk


[http://www.treasurers.org/repos  ACT briefing note: Practical steps to investing in Repos ]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 09:17, 11 May 2015

Risk management.

A table or other appropriate structure used to facilitate the description and assessment of risks.

The use of a well designed structure is necessary to ensure a comprehensive assessment process.

Strategy/objectives should also feature to identify function responsible for developing strategy and policy.

By considering the consequence and probability of each of the risks, it should be possible to prioritise the key risks that need to be analysed in more detail.


See also


Other links

Working In Uncertainty - A better perspective on risk management and internal control, www.workinginuncertainty.co.uk