Collateral Risk Key Performance Indicators (KPIs)

Evaluate your organization’s financial risk management with collateral risk KPIs designed to support structured evaluation, oversight and monitoring. This tool explains how collateral can provide credit protection while introducing exposure when pledged assets decline in value, cannot be converted into cash or are not accessible following counterparty default. It outlines business risks associated with collateral and provides practical management practices for assessing financial exposures in relation to business objectives. It also addresses senior management involvement, written financial risk policies, defined responsibilities, exposure limits, cross-functional participation and ongoing monitoring.

Key Features:

• Defines collateral risk and illustrates default and liquidity exposures
• Provides management practices for assessing and monitoring financial risk
• Addresses policies, responsibilities, exposure limits, accounting and disclosures