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{{anat|negotiation| | {{anat|negotiation|{{image|Shit fan|jpg|When [[credit]] hears about this, the [[When the shit hits the fan|shit’s really going to hit the fan]].}}}}{{dpn|/piːs ɒv ˈpeɪpə/|n|}}''Derogatory [[sales]] slang'': <br> | ||
}} | |||
:(1) A legal {{tag|contract}}. <br> | :(1) A legal {{tag|contract}}. <br> | ||
:(2) Any [[verbiage]] put together by the [[legal eagles]] that gets [[credit]] [[Inclined|across the line]]. <br> | :(2) Any [[verbiage]] put together by the [[legal eagles]] that gets [[credit]] [[Inclined|across the line]]. <br> | ||
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===Don’t ask your counterparty to underwrite your internal governance=== | ===Don’t ask your counterparty to underwrite your internal governance=== | ||
Contracts are no place to outsource your own internal policy governance on your counterparty either. Herewith the age-old chestnut of the [[authorised signatory lists]]. Likewise, if your counterparty says, for example, “we are a UCITS fund and we can’t enter into term repo trades, so we need a right to terminate on any day, at par” — thereby helping themselves to a free option at your expense, in the name of regulatory compliance — your answer is “If you aren’t allowed to do term trades, the solution is really easy: ''don’t'' do freaking term trades. There’s no reason I should underwrite your internal lack of governance.” | Contracts are no place to outsource your own internal policy governance on your counterparty either. Herewith the age-old chestnut of the [[authorised signatory lists]]. Likewise, if your counterparty says, for example, “we are a UCITS fund and we can’t enter into term repo trades, so we need a right to terminate on any day, at par” — thereby helping themselves to a free option at your expense, in the name of regulatory compliance — your answer is “If you aren’t allowed to do term trades, the solution is really easy: ''don’t'' do freaking term trades. There’s no reason I should underwrite your internal lack of governance.” | ||
===Contracts are your last, and weakest, line of defence=== | ===Contracts are your last, and weakest, line of defence=== | ||
If you have to resort to your legal contract to get you out of a pickle, someone has not been doing his job. Your organisation has let a situation that it was meant to be managing get out of hand. Exercising defensive contractual rights is like deploying a [[smart bomb]] in ''[[Defender]]'', only there’s a fair chance it will blow up in your face. A [[risk controller]] who thinks, let alone says out loud | If you have to resort to your legal contract to get you out of a pickle, someone has not been doing his job. Your organisation has let a situation that it was meant to be managing get out of hand. Exercising defensive contractual rights is like deploying a [[smart bomb]] in ''[[Defender]]'', only there’s a fair chance it will blow up in your face. | ||
A [[risk controller]] who thinks, let alone says out loud — and it pains me to say that they really do, readers — “at end of the day, if the shit hits the fan, it is all about documentation” needs to be told to [[Get your coat|get her coat]]. ''It is '''not''' “all about documentation”. It is about making sure the shit '''doesn’t''' hit the bloody fan.'' | |||
{{sa}} | {{sa}} | ||