Risk Management Consulting
Risk management is an item on almost every company’s “to-do” list. It’s a great concept, but where to begin and how to start? HedgeStar consulting services can assist with creating an enterprise risk management framework that will suit any organization and its hedging programs.
Independent director-based committees and senior management committees are crucial for maintaining meaningful oversight of risk management programs. Let HedgeStar help put the “right people in the right seats.”
GOVERNANCE
Senior leaders need effective tools to help manage risk at the highest levels. The risk scorecard is an expression of a company's risk appetite and gives key stakeholders a quick glimpse into state of risk at the company relative to key risk limits, sub-limits and other important metrics.
RISK SCORECARD
Companies employ strategic and tactical efforts to accomplish business objectives. Tactical efforts involve processes that introduce financial risk to the enterprise. HedgeStar can help design control activities to mitigate financial risks and help spur progress toward achieving
those objectives
PROCESS, RISK, CONTROL
A good policy is useful and sustainable. It should outline clearly the role of governance functions, risk reporting (e.g. scorecards), the responsibilities of risk groups, and other key controls. The policy should also accommodate future business decisions such as new product/service offerings, mergers and acquisitions, and new risk exposures. We can help you design this critical document.
RISK POLICY
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.
Implementing New Risk Management Program
Hedgestar consulting services can assist with creating an enterprise risk management framework that will suit any organization and its hedging programs. We focus first on governance by helping organizations establish committees for maintaining meaningful oversight of risk management programs. We help create a risk management policy that is useful and sustainable while clearly outlining the role of governance functions, risk reporting (e.g. scorecards), responsibilities of risk groups, and key controls. We also help make risk scorecards, which provide a glimpse into the state of risk at the organization relative to key risk limits and other important metrics. Finally, we work with clients to institute changes at the process, risk & control level to help accomplish key business objectives.
Evaluate Existing Risk Management Program
As former auditors, our thorough examination of your existing risk management framework always yields positive recommendations and actionable take-aways. Our approach is “top-down” – evaluating governance, assessing key employee roles and responsibilities, refining risk policy and then moving into more granular processes and controls. Our experts help to reduce operational and financial risks, and in many cases, create greater efficiencies and lower costs to the enterprise.
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.
Risk Management Resources
HedgeStar consulting services can assist with creating an enterprise risk management framework that will suit any organization and its hedging programs.
When considering a hedge program, organizations should always begin by establishing risk appetite. This exercise is a coordinated effort between senior management and the board of directors. Risk appetite is often represented by a risk policy that places ‘guard rails’ around an organization’s hedging activities. A good risk policy will clearly outline the role of governance and leadership functions, risk reporting (e.g. scorecards), the responsibilities of risk groups, key processes and internal controls.