Payment netting and Risk policy: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
m (Spacing and category added 20/8/13)
 
Line 1: Line 1:
A form of netting, involving payment instructions in the same  currency and with the same due date, where the party with the largest aggregate balance settles the difference resulting from the netting operation.   
''Risk management''.
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.   


Also called settlement netting.
Risk policy should cover commercial as well as treasury approaches to exposure management.
 
The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.
 
It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.




== See also ==
== See also ==
* [[Netting]]
* [[Exposure]]
* [[Position netting]]
* [[Risk appetite]]
* [[Risk control]]
* [[Risk tolerance]]
 
[[Category:Financial_risk_management]]

Revision as of 14:08, 20 August 2013

Risk management.

Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.

Risk policy should cover commercial as well as treasury approaches to exposure management.

The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.

It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.


See also