Energy Credit Best Practices – Chapter: Information Technology http://ccro.org © Copyright 2022, CCRO. All rights reserved. 36 include equipment, software, communications, development methodologies, modeling tools and organizational structures. IT Governance - Is the processes that ensure the effective and efficient use of IT in enabling an organization to achieve its goals. IT Infrastructure - IT infrastructure is the System of hardware, software, facilities, and service components that support the delivery of business System s and IT-enabled processes. IT System - A collection of computing and/or communications components and other resources that support one or more functional objectives of an organization. IT System resources include any IT component plus associated manual procedures and physical facilities that are used in the acquisition, storage, manipulation, display, and/or movement of data or to direct or monitor operating procedures. An IT System may consist of one or more computers and their related resources of any size. The resources that comprise a System do not have to be physically connected. Key Performance Indicator (KPI) - Are a set of quantifiable measurements used to gauge a company’s overall long-term performance. KPIs specifically help determine a company's strategic, financial, and operational achievements, especially compared to those of other businesses within the same sector. Key Risk Indicators (KRI) - Key Risk Indicators are used by financial firms to measure their exposure to a given risk at a particular time. By comparing an appropriate set of Key Risk Indicators with internal limits and thresholds, banks can determine whether their operational risk exposures are within their Risk Appetite. Liquidity Risk (Collateral) - In the context of funding, Liquidity Risk refers to the ability of organizations to fund liabilities as they fall due without incurring losses through being forced to sell less-liquid assets quickly. Liquidity Risk (Market) – In the context of traded markets, Liquidity Risk is the risk of being unable to buy or sell assets in each size over a given period without adversely affecting the price of the asset. The risk will be high if, for example, a large trade is being executed over a short period of time in an insufficiently liquid market. Logical Security – Safeguards for an organization’s IT System s, including user identification and password access, authenticating, access rights and authority levels. These measures are to ensure that only authorized users can perform actions or access information in a network or a workstation. It is a subset of computer security. Machine Learning (ML) - Like Artificial Intelligence (AI), but focuses on historically and automatically improving logic and decisions over time based on prior execution of the algorithm(s). Mark-to Market (MtM) - The value of a financial instrument (or a portfolio of such instruments) at current market rates or prices of the underlying product. Constitutes the current replacement costs of future deliveries or financial settlements. A component of the Current Exposure calculation. Master Agreements - Is a contract that spells out most but not all the terms and conditions between the signing parties. Its purpose is to speed up and simplify future transactions. The initial time-consuming negotiation is done once, at the beginning. All future transactions are done with a confirmation and fall under the Master Agreement. Confirmations spell specific transaction,