Risk Management Consulting
For many organizations, hedging knowledge 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.
Validate Risk Exposure
Our approach starts with understanding your risk exposures in connection with interest rates, currencies, or commodity prices. From that foundation, we can help develop a hedging program and accounting regime that will mitigate the risks you choose to avoid, thereby minimizing the likelihood of a significant impairment of profitability.
Risk Management Evaluation
For more seasoned organizations that currently have hedging programs in place, we will review and evaluate risk management practices and policies. We will strive to either reinforce the confidence placed in your risk managers, or provide suggestions to add greater discipline to your current risk management processes.
Training and Education
We offer custom training and education to our clients, boards of directors, audit firms, and other stakeholders looking to improve understanding of derivatives – how these contracts work, how they’re priced, how they’re traded, how they can be expected to perform, and the accounting that should be applied. Let us tailor a program for you.
Credibility and Expertise
At HedgeStar, we are up-to-date on ever-changing accounting standards, interpretations, and reporting requirements. We also provide training to our clients, boards of directors, audit firms, and other stakeholders looking to gain further understanding of the valuation and/or hedge accounting process.
Industry Thought Leader
We are often called upon by industry associations and individual organizations to present industry trends, accounting standard updates, and risk management concepts. Our professionals are consistently published in various industry publications on those same concepts.
Internal/External Auditor Support
Auditors that evaluate derivative hedging programs should seek the assistance of subject matter experts. We can help support audit procedures on process, control and financial reporting impacts that derivatives have on an organization.