Risk Management PolicyHaving framed Risk management policies for a number of Financial Institutions, GoI owned entities, PSUs and other large private clients and through decades of experience in this area, we have developed a tactical approach towards market risk management which allows us to formulate relevant policies based on the unique risk and reward perspective of each individual client.
Policy Formulation and Review
- Understanding and quantifying the balance sheet risk in terms of FX, Commodity or Interest Rate exposures.
- Sensitivity Analysis of market volatility on company’s profitability and net worth to arrive at the risk appetite.
- Articulating Hedging Policy to contain the risk and lower the negative impact.
- Gap Analysis to identify any gaps which are leading to ineffective hedging decisions if any.
Risk Management Framework
- Benchmarking System.
- Hedge Mechanism.
- Authority and Approval Matrix.
- Dashboards and MIS Report Formats.
- Regulatory Compliance.
- Appraisal Mechanism.
Policy Implementation Support
Clients can choose to outsource their entire treasury operations to us within the approved Risk policy framework.
Risk Management Framework
- Benchmarking System.
- Hedge Mechanism.
- Dashboards and MIS Report Formats.
- Regulatory Compliance.
- Appraisal Mechanism.
- Authority and Approval Matrix.
Policy Implementation Support
Clients can choose to outsource their entire treasury operations to us within the approved Risk policy framework.
What would constitute a sound FX risk management framework?
A risk management policy should be actionable and adaptable to changing market conditions. A good risk management framework should be active and not passive in nature.
To get such a policy formulated for your treasury exposures Book a Call with us
Looking to prepare a market risk management policy keeping your balance sheet risks and risk appetite in mind?
As part of the policy making process we conduct a sensitivity analysis to assess the risk taking capacity of your balance sheet. This helps to arrive at the optimum hedging ratios.
If you are looking for a risk management which suits your balance sheet Book a Call with us
Want someone to help in policy implementation support?
To know more Book a Call with us
Would you like to set Policy targets?
Our policy builds a mechanism to setup a quantitative target for the treasury to achieve. This gives direction for hedging decisions and also makes the performance measurable.
To understand further Book a Call with us