Organisation structures for CCR management
The risk control unit shall be responsible for the design and implementation of its CCR management, including the initial and on-going validation of the model, and shall carry out the following functions and meet the following requirements:
it shall be independent from units responsible for originating, renewing or trading exposures and free from undue influence;
it shall be adequately staffed;
its work shall be closely integrated into the day-to-day credit risk management process of the institution;
its output shall be an integral part of the process of planning, monitoring and controlling the institution's credit and overall risk profile.
The collateral management unit shall carry out the following tasks and functions:
calculating and making margin calls, managing margin call disputes and reporting levels of independent amounts, initial margins and variation margins accurately on a daily basis;
controlling the integrity of the data used to make margin calls, and ensuring that it is consistent and reconciled regularly with all relevant sources of data within the institution;
tracking the extent of re-use of collateral and any amendment of the rights of the institution to or in connection with the collateral that it posts;
reporting to the appropriate level of management the types of collateral assets that are reused, and the terms of such reuse including instrument, credit quality and maturity;
tracking concentration to individual types of collateral assets accepted by the institution;
reporting collateral management information on a regular basis, but at least quarterly, to senior management, including information on the type of collateral received and posted, the size, aging and cause for margin call disputes. That internal reporting shall also reflect trends in these figures.