Secured and Transposition error: Difference between pages

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1. ''Credit risk management - collateral.''
1.
A simple error of data entry when two digits in a number are reversed (transposed).


In relation to lending and borrowing, supported by assets pledged by a borrower, as additional protection for the lender's interest.
When two adjacent digits are transposed the error will always be divisible by 9.


For example a residential mortgage loan, for which the security is the residential property mortgaged to the lender.
For example:
If 3,460 should be 3,640
the difference is 180 (3,640-3,460=180)
180/9 = 20.




2. ''Credit risk management - effective collateralisation.''
2.
 
Similar errors with non-numerical data.
In relation to lending and borrowing, supported in other ways by related assets, to protect the lender.
For example ABC entered wrongly as ACB.
 
For example, in a sale and repurchase agreement (repo).
 
 
3. ''Credit risk management - other credit enhancement.''
 
More generally, in relation to all forms of credit, supported by one or more credit enhancement structures for the the benefit of the lender.
 
 
4. ''Safety - confidentiality - controls - systems - procedures.''
 
Acceptably low risk in relation to physical safety and confidentiality, especially following a process of improvement and enhancement to systems, procedures and related controls.




== See also ==
== See also ==
* [[Bells and whistles]]
* [[Double counting]]
* [[Bond]]
* [[Charge]]
* [[Collateral]]
* [[Committed]]
* [[Controls]]
* [[Credit enhancement]]
* [[Debt security]]
* [[Fixed charge]]
* [[Floating charge]]
* [[Liquidity]]
* [[Mortgage ]]
* [[Negative pledge]]
* [[Repurchase agreement]]
* [[Safekeeping]]
* [[Secured creditor]]
* [[Secured debt]]
* [[Secured Overnight Financing Rate]]  (SOFR)
* [[Securitisation]]
* [[Securitise]]
* [[Security]]
* [[Uncommitted]]
* [[Unsecured]]
* [[Unsecured debt]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Intercompany_funding]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]
[[Category:Trade_finance]]

Revision as of 13:07, 14 August 2013

1. A simple error of data entry when two digits in a number are reversed (transposed).

When two adjacent digits are transposed the error will always be divisible by 9.

For example: If 3,460 should be 3,640 the difference is 180 (3,640-3,460=180) 180/9 = 20.


2. Similar errors with non-numerical data. For example ABC entered wrongly as ACB.


See also