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Examples

Large European chemical group

2 successive missions :

  1. Assessing the exchange risk management policy (FX risk)
  2. Steering changes in risk management policy.

Listening

This group operates in over 80 countries with around 40 different currencies. As a result, it is widely exposed to exchange rate fluctuations, with an undesirably high level of net income and cash flow volatility.

Hearing

The finance department challenge is to upgrade the group’s organisation and practices in order to reach the goals set by general management in terms of cash flow stabilisation, risk management and value creation. The context of high volatility on the FX market makes meeting the challenge even more pressing.

Achieved together

First mission

  • taking stock of the current situation and devising a general FX risk management diagnostic from the point of view of both the general risk management policy and the operational implementation,
  • assessment of the general risk management policy: review of management principles behaviour rules, identification tool and risk measurement assessment,
  • assessment of the organisation’s relevance, especially from the point of view of managing decision making,
  • identification of priorities for improvement, recommendations.

Second mission

  • definition of a new market risk management policy to make it possible to share managing decisions with the CFO, risk control and accounting, and a satisfactory level of information to general management,
  • understanding high FX risk previously identified within the group, designing management strategies for such positions, overseeing the managing environment of such positions (accounting, tax issues, consolidation, supervisors, IT, back & middle office),
  • supporting the teams in their transformation by helping them to become risk rather than flow managers.