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 In most businesses significant investment is made in processes which support operational efficiency, however very often too little attention is given to the measurement, control and reporting of price risk.
Increasingly stringent reporting and control processes from financial acts like Sarbanes and Oxley and other such legislation is greatly increasing the need for companies to improve their governance, reporting and controls. Encore combines industry knowledge and market expertise with a risk measurement process using Value at Risk (VaR). This additional measure ensures the risk profile of your organisation remains consistent with your objectives providing you continue to measure and control that relationship. The resulting transfer of risk through hedge transactions is an effective and advisable risk management technique, but your risk mitigation strategy will largely depend on the limitations of your supplier agreement, any governance restrictions and your capacity to sustain risks and possible losses. It is imperative to understand right away your organisations appetite for risk and its operational parameters so transactions that are truly for hedging are not avoided due to concerns they could be misconstrued as trading or 'speculative'. To arrange a complimentary workshop with one of our risk specialists - click here
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