imported>Doug Williamson |
imported>Doug Williamson |
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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). |
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| 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. |
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| 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. |
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| 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. |
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| For example, in a sale and repurchase agreement (repo). | |
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| 3. ''Credit risk management - other credit enhancement.''
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| More generally, in relation to all forms of credit, supported by one or more credit enhancement structures for the the benefit of the lender.
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| 4. ''Safety - confidentiality - controls - systems - procedures.''
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| Acceptably low risk in relation to physical safety and confidentiality, especially following a process of improvement and enhancement to systems, procedures and related controls.
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| == See also == | | == See also == |
| * [[Bells and whistles]] | | * [[Double counting]] |
| * [[Bond]]
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| * [[Charge]]
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| * [[Collateral]]
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| * [[Committed]]
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| * [[Controls]]
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| * [[Credit enhancement]]
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| * [[Debt security]]
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| * [[Fixed charge]]
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| * [[Floating charge]]
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| * [[Liquidity]]
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| * [[Mortgage ]]
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| * [[Negative pledge]]
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| * [[Repurchase agreement]]
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| * [[Safekeeping]]
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| * [[Secured creditor]]
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| * [[Secured debt]]
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| * [[Secured Overnight Financing Rate]] (SOFR)
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| * [[Securitisation]]
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| * [[Securitise]]
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| * [[Security]]
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| * [[Uncommitted]]
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| * [[Unsecured]]
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| * [[Unsecured debt]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Intercompany_funding]]
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| [[Category:Investment]]
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| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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| [[Category:Liquidity_management]]
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| [[Category:Technology]]
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| [[Category:Trade_finance]]
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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