RedShift offers a methodology for comparing a series of legally executed contracts with the electronic versions that are present in one or many systems. Errors in data entry can cause the exposures in the system to be calculated wrongly, whether too high or too low. Such discrepancies can be extremely costly especially when computing potentially inaccurate netting offsets or margin calls.
Typical areas that have a high exposure to discrepancies are parent and third party guarantees, netting agreements and annexes, MAC and Adequate Assurance Clauses, as well as other mitigants such as letters of credit and bank guarantees. |
