Risk management

We understand that when things go wrong in treasury, there can be a huge impact on the organisation as a whole. Our advice on the full range of financial risk management techniques is therefore a key part of the service we provide to our clients, and our consultants are available to attend Board or Committee meetings to discuss risk management issues at a senior level.

In terms of credit risk management, we advise clients on suitable parameters for selecting counterparties and pooled funds, based on a combination of credit ratings, market data and our own specialised knowledge of the market. We also suggest suitable cash and duration limits, based on each client’s individual circumstances, to reduce both the probability and the impact of any credit related default.

We also assist clients with their interest rate risk management, using techniques such as scenario planning, sensitivity and gap analysis to evaluate the financial impact of various outcomes for interest rates. Combining this analysis with our economic forecasts creates a powerful probability/impact study.

Interest rate forecasting

We forecast the future path of interest rates using the combination of our consultants’ academic knowledge and their practical market experience. The base information necessary for accurate forecasts is, of course, collected in a scientific manner, and we have access to forecasts from all key commentators. We also maintain close contact with a number of City economists and financial journalists, who help us to round our view of economic developments and the trend in interest rates.

To this theoretical view, we add our knowledge and experience of the financial markets. Although academic forecasts assist in predicting the longer-term trend of both short- and long-term interest rates, it is market forces that determine specific interest rate levels relevant to our clients. It is the ability to understand these forces that achieves accuracy in day-to-day forecasting of both short- and longer-term interest rates.

Treasury strategy development

Our unique perspective and international market knowledge will add exceptional value for your organisation, enabling you to evolve a sound strategy. Decisions can then be evaluated and made within a context of sound policies and effective controls, enabling your treasury management team to achieve optimum performance.

After using our services, clients report improvements across a wide spectrum of treasury functions, including enhanced levels of risk control, improved decision-making, better margins and superior strategy development.

Review of treasury policies

A thorough review of your existing policies is the first step towards effective treasury management. The key is to manage financial risk with a balanced strategy, and to ensure that there are robust systems, controls and mechanisms for reporting to the Board or Council.

Debt/funding management

We can provide assistance in all aspects of debt and funding management. We take a proactive approach to this, and aim to develop and discuss your management strategy through regular contact with the treasury team reinforced by quarterly meetings. The full impact of any suggested strategies will be analysed and risks quantified, taking account of all relevant factors.