Collateral management

Collateral management is the process of overseeing assets—such as cash, securities, or property—that parties in a financial agreement pledge to secure a loan or mitigate risk. It ensures that collateral is adequate, properly documented, and can be easily accessed or returned if needed. This helps protect lenders from default and maintains trust between parties by reducing financial exposure. Effective collateral management involves regular assessment, compliance, and efficient handling of collateral throughout the duration of the financial arrangement.