Product control
Within investment banking, product control is a control function responsible for safeguarding the assets of the bank and accurately reporting the daily profit and loss figures. Product controllers are generally assigned to a particular asset class and will provide explanation of the P&L for a dedicated trading desk. This function is responsible to communicate this result within the bank and to the authority FED or ECB.
Within some investment banks the product control task is linked to the risk analyst job, as value at risk.
In turn product controllers are responsible for insuring traders mark their books to fair value prices. There have been high profile cases of where banks have been fined for this control but working effectively, examples including the USA's financial services regulator, the Securities and Exchange Commission, fining European investment bank Credit Suisse over mis-marking bonds during the height of the subprime credit crisis.
Poor product control procedure were also noted in the collapse of US investment Bank Lehman Brothers.
