Data Management and Reporting
Legal documentation is an invaluable source of data that is crucial to the effective operation of a number of core risk management processes.
Further, evolving regulatory demands are compelling financial institutions to have immediate access to an increasing range of granular document data, including:
- Events of default
- Termination events (in particular NAV triggers, ratings downgrades)
- Collateral/margin terms
In order to provide access to such data, DRS can deploy expert staff to conduct the required review of executed documentation to identify and record key legal and commercial data.
Extracted data can be captured and stored according to the client’s specific requirements (either a bespoke database created for this purpose or an existing client system).
Given that we understand the relevant types of master agreements and other documents inside out, we can also assist in the definition and design of the data model(s) required to meet each client’s requirements and testing the relevant data capture tool prior to go-live .
The key benefits of implementing a data capture process are as follows:
- Compliance with regulatory requirements (e.g. UK FCA liquidity risk reporting regime, RRP, CASS resolution packs, trade reporting under EMIR/Dodd Frank Act etc)
- Immediate access to core data (e.g. financing terms, scope of termination events, rating downgrade trigger, collateral management terms) to provide real-time risk monitoring
- Enhanced reporting to illustrate compliance (or non-compliance) with documentation policies/guidelines
- Rapid and informed response to counterparty defaults