New Product Approval Process
Every bank has a new product approval process, which is the process by which the bank ensures that a new product will not create undue risk. It is a very sensible process, but it can feel very administrative. The process is generally to get the sign-off of identified senior managers in different departments of the bank who all agree that the new product makes sense and the risk can be managed (Box 14.1).
Box 14.1 Key signatures for a new product approval
- Senior management product champion
- Middle office team
- Documentation team
- Back office team
- Legal team
- Accounting team
- Finance team
- Tax team
- Quant team
- Counterparty credit risk team
- Compliance team
- Risk management team
Risk limits are probably the most crucial ...
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