Deal Confirmation: Weak Link in the Risk Management Chain
- Tags:
- Confirmation,
- Finance,
- Financial Planning,
- Financial Services,
- Management,
- Platts Global Energy,
- Risk Management,
- Security,
- Strategy
- Source:
- Platts Global Energy
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Overview: No matter how fast and how many trades one can do in the front office, the execution will not be 100% error-free. It's up to the deal confirmation desk to catch the mistakes--and they must be caught in time. Confirmation is a manual, paper-driven process of verifying signatures and assembling evidentiary documents to support deals. The importance of deal confirmation cannot be overstated. In addition to being a legal and binding act, confirmation serves as the last opportunity to prevent a deal from being transacted wrongly. As transaction volumes rise, so do the opportunities for introducing human error during the deal confirmation process. Confirmation represents a potential source of operational risk that cannot be hedged. Article explains about the zero tolerance and state to go with deal flow. How successful are humans at catching errors made at the deal-confirmation stage? To know answer of this question read the article.
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Format: HTML | Date: Apr 2001 | Pages: 1
