Collateral Management Benefit Assessor

Our Collateral Management Benefit Assessor tool is used to assess the benefits and associated costs of any collateral management initiative. We have a pre-configured tool for this purpose, but this may also be built out to meet a client’s particular requirements. The diagram below shows the primary components of our Collateral Management Benefit Assessor:

For each of the areas covered we have developed a range of metrics to assess the benefits and costs arising from the proposed programme of work:

Area Metrics
View full table
P&L
  • Expected revenue benefits to be gained from improvements to management of collateral inventory and optimisation
  • Expected reductions in collateral financing costs
  • Expected additional business to be gained through improvements to collateral management client service
Risk exposure Expected change in counterparty credit risk exposures as a result of improvements to be made to the collateral management process
Capital Expected change in client’s economic and/or regulatory capital through improvements to collateral management processes
Efficiency and control Efficiency and control benefits to be gained from automation and or rationalisation of the end to end collateral process management process
Reputation This is a more judgemental area in which we assess the likely impact on the client’s reputation from the perspective of:
  • Customers
  • Regulators
  • Peers
  • Rating agencies/providers of credit
Project costs We have standard project cost estimations for collateral management projects based upon previous work. These can be used as a starting point and be built out for each client specific initiative
Ongoing technology costs We have standard ongoing technology cost estimations for collateral management infrastructure based upon previous work. These can be used as a starting point and be built out for each client specific initiative
Headcount costs We have a headcount model for the estimation of the ongoing incremental collateral management headcount which can be expected to arise from any process change

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