Hedge Strategy Review
Do you understand the financial risks confronting your organization?
Monitoring how risk is managed
Being responsible for overseeing the financial risk management of the enterprise, corporate board members must understand the various financial risks that confront the organization, and assure those risks are appropriately addressed. For financial risks related to interest rates, foreign currency exchange rates, and/or the uncertainty of commodity prices, derivative contracts can (and do) play a critical risk-mitigating role; but the know-how about such tools and techniques is often beyond the area of expertise of most board members.
For many organizations, knowledge about hedging and risk mitigation is concentrated to an individual or a small group; and in most cases, senior leaders and directors lack the background information or experience necessary to evaluate how hedging programs are designed and executed. We address this knowledge gap with an objective review and assessment of current financial risk management practices that will either validate current practices or suggest improvements that align with industry best practices.
Determine how financial risk exposures are identified and measured.
Review how decisions are made to determine when and how much risk to mitigate.
Identify which hedging tools are used.
Assess when and how adjustments to derivative positions are made.
Verify if best accounting practices being employed.