Volume 2 — Governance and ControlsGovernance and Controls © Copyright 2002, All rights reserved 24 • All product movements should be tracked and balanced throughout the month. • In the event of a cut or shortcoming in delivery or supply, the scheduler's ability to correct the error in the marketplace by entering into a transaction should be appropriately limited. Key Reports • Position report by location. • Nomination schedule. • Imbalance report. 1.1.7 Deal Management Process Overview After a deal has been executed and captured in the system, the risks must be managed over the life of the deal. For standard deals, this can be accomplished through portfolio position management more complex deals can be assigned to a deal manager. The deal manager resides in the front office, and should ensure that the deal is executed consistently with the terms and conditions of the contract. Any potential or actual violations of contract terms should be immediately identified, communicated internally and to the counterparty, measured, and resolved. The effects of the resolution on the deal should be recorded in the system and documented. If the deal has any optionality owned by the company, the deal manager is responsible for ensuring that these options are exercised when they are of value. The deal manager performs this function by communicating with the front office groups (logistics, trading, pricing, etc.), understanding the positions as provided by system reports, and negotiating standard deals to complement the original deal. Objectives • Manage the risks and realize the value initially identified and modeled in the origination and structuring processes (trading, contracts and asset management and structuring). • Ensure that the responsibilities of all parties to the contract are performed if they are not performed, ensure that the resulting economic effect and risks from non-performance are identified, valued, communicated, and resolved on a real-time bases. • Realize any incremental commercial opportunities resulting from changes in market conditions as factored into the original deal structure (e.g., upselling the original deal). • Measure the accuracy of original assumptions and performance of the deal as originally modeled over its life account for the value created from the deal through ongoing deal management.