The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!
From the Wiki University
What evidence can you provide to prove your understanding of each of the following citeria?
Process collateral agreements and credit support documentation
|
|
Terms and conditions for a credit support document (CSD) are negotiated with a predicted market to market (MTM) position Completed |
Evidence:
|
Netting of trades is agreed between the parties to facilitate the collateral agreement, and signed off by the legal department. Completed |
Evidence:
|
The credit rating of the collateral counterparty is assessed using external ratings and own organisational guidelines so the agreed Credit Support Annexe (CSA) terms reflect the appetite for counterparty risk and limits in the CSD Completed |
Evidence:
|
A complete a legally binding collateral agreement is drafted, authorised and processed in accordance with organisational policies and procedures Completed |
Evidence:
|
Monitor collateral activity
|
|
The net MTM value of the trades covered by the CSD is used to calculate the collateral margining activity. Completed |
Evidence:
|
Margin calls are initiated when the terms of the CSA dictate Completed |
Evidence:
|
Market values for non-cash collateral such as debt is monitored and updated daily, checking that any cuts in valuations are applied in line with agreed framework Completed |
Evidence:
|
Derivative credit exposures on long-term and short-term deals are identified and updated on the organisational credit management system Completed |
Evidence:
|
Threshold amounts and monitored to determine options to use a break clause if necessary Completed |
Evidence:
|
Collateral deals are negotiated and replaced when a break clause has been invoked Completed |
Evidence:
|
Call and return amounts are processed promptly and accurately Completed |
Evidence:
|
Segregation of roles is observed, e.g. margining team do not manage collateral settlements Completed |
Evidence:
|
Manage collateral disputes or defaults
|
|
Differences in valuations are identified and escalated to the correct stream. Completed |
Evidence:
|
Portfolios are checked, valued and reconciled on a regular basis to ensure collateral management data is current and valid Completed |
Evidence:
|
Disputes are dealt with according to organisational policy and procedures Completed |
Evidence:
|
Unresolved disputes or defaults are documented and referred to appropriate personnel where required Completed |
Evidence:
|
Non-settlement or fails of agreed collateral are investigated and escalated to the appropriate risk stream in line with agreed Service Level Agreements (SLAs). Completed |
Evidence:
|