In banking, exceptions are items that require action because they fail to meet certain predefined criteria. An exception threshold is an upper or lower limit (typically numeric) at which point exception-related requirements no longer exist.
To maintain compliance and mitigate risk, banks and credit unions must proactively manage their exceptions.
Expiring documents are those that are associated with expiration dates and must be regularly collected or updated to avoid exceptions. Once a document expires, it might also be considered a missing document until the exception has been resolved.