Amid one of the worst crises in the EU's history, many financial institutions are still unsure as to the potential legal and financial implications that a possible future exit of Greece - or indeed of any nation from the single currency – may cause.

Financial institutions need to urgently review their derivatives contracts to determine the true level of risk exposure and to take remedial action as appropriate.

It seems extraordinary in the face of Greece’s third bailout that, until recently, the possibility of a country leaving the single currency had simply not been considered. Yet the implications for derivatives contracts are potentially extremely serious.

While bodies such as the International Swaps and Derivatives Association (ISDA) have been recommending that certain provisions are amended by counterparties to ensure greater certainty in the event of Grexit – or indeed the exit of any other member state from the euro - many older derivatives documents leave organisations at risk of unintended consequences.