Financial and Commodity Risk Management
Our Financial and Commodity Risk Management practice deals with the strategic risks that Treasurers face in managing a global portfolio. We carefully identify all of the risk components facing a company based on geographic presence, transaction flows, financial situation and risk appetite. This approach will:
Clearly identify exposures and document existing hedging practices. We develop a profile of risk components that may include underlying exposures in certain contractual arrangements, financing obligations or investments. Business operational requirements, risk philosophy and customer/vendor relationships are examined to assess the “manageable ” and “tolerable” components of existing risk. Determine the most appropriate hedging techniques, including natural offsets, netting opportunities and derivative instruments. We will work with treasury and accounting to insure that these techniques are effective from a hedge accounting perspective. Develop an operational policy and procedures manual which will define exposures, set hedging limits or bands, specify approved hedging instruments and delineate authority limits.
Please visit the Publications page to download our articles on risk management.