TREASURY RISK MANAGEMENT CONSULTING

We advise small, medium, large corporate houses treasury teams on Forex Interest Rates Risk

• Working with companies having Forex exposures of $2mn - $2bn for advisory as well as outsourcing
• We help companies Focus on their core business, helping them to insulate against market volatility. This has seen companies saving at least 1-2% on annual benchmarks.

Our Key Strengths:

• Effective Hedge related Decision making through mapping of Exposures
• Robust Accurate Analytical Framework
• Appropriate Dynamic Hedging Strategies
• Effective Strategy Execution
• Regular Monitoring Strategy Reviews

Key Areas to Work on

• Risk Management Policy: The first step would be to work on an actionable Risk Management Policy.
• Benchmarking
• Benchmarks are key to protecting business value.
• The basis for the same could be based on the exposure on the Bill of Lading date. They would be benchmarked for corresponding Forward Periods by linking to live Reuters Forward Pricing module for constant monitoring.
• Benchmarking Process can be discussed with all the stakeholders in the Company to arrive at a consensual system.
• This may include Cost of Funds, Forward Premia, tolerance for margin of error other considerations which could be reviewed dynamically

Process for FX Operations

• Identification of Foreign Exposure
• Bucketing
• Benchmarking
• Actionable Hedge Strategy
• Periodic / Continuous Review

Products Services
Medium Term Analysis of Currencies and Strategies

Major Currencies

• EUR
• GBP
• JPY
• CNY
• IDR
• ZAR
• CHF
• RUB

Appropriate Strategies

• Plain Vanilla (Forwards)
• Options
• Derivatives (Interest Rate Swaps and other derivatives as required)

Regular NPV Valuation service