Derivatives Readiness Check

Use this self-assessment to identify where a derivatives control environment may need stronger evidence, testing or management attention. It is a screening aid—not a regulatory determination.

How to use: For each area, select the answer that best reflects the current evidence position. “Not evidenced” should be treated as an evidence gap, not automatically as a control failure.

1. Product governance

Approved and evidencedPartially evidencedNot evidenced

2. Regulatory applicability

Determined and documentedPartially determinedNot evidenced

3. Underlying exposure

Verified and documentedPartially verifiedNot evidenced

4. Counterparty risk

Limits and assessment evidencedPartial evidenceNot evidenced

5. Valuation and model controls

Valuation and challenge evidencedPartial evidenceNot evidenced

6. Margin and collateral

Monitoring and reconciliation evidencedPartial evidenceNot evidenced

7. Regulatory reporting

Complete, accurate, timely and traceablePartial controlsNot evidenced

8. AML/CFT and sanctions

Applicable controls evidencedPartial evidenceNot evidenced

9. Reconciliation and exceptions

Exceptions tracked to closurePartial trackingNot evidenced

10. Governance and audit trail

Management oversight and evidence completePartial evidenceNot evidenced

Interpretation boundary: The score is an internal screening indicator based only on the selections made here. It is not a regulatory compliance rating, audit opinion, legal conclusion or investment assessment. Where evidence is missing, use INSUFFICIENT EVIDENCE — VERIFICATION REQUIRED.

NEXT STEP

Move from screening to testable evidence

Use the result to focus evidence collection and control testing—not to conclude that a derivatives activity is compliant or non-compliant.

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