KPMG's Corporate Financial Risk Management team can assist organisations to develop and execute cost effective financial risk management strategies.
We assist organisations to execute cost effective financial risk management strategies.
All organisations must manage financial risks such as foreign exchange, interest rate, liquidity, credit risk and operational risk (i.e. fraud and error). Some must also manage commodity price risk which affects the cost of inputs or the value of sold products.
These risks can be complex to manage with the wrong risk management decision literally costing millions of dollars in real or opportunity loss. In the worst case scenario, experience has shown it can ruin the organisation.
In order to implement its risk management decisions, organisations may then need to execute relatively complex investment, borrowing and hedging transactions. Poor execution can result in the payment of large margins, which could have been avoided – to services providers.
Having executed risk management transactions, organisations need to then account and report on these transactions – which can be no easy matter.
However a lot of the problematic issues mentioned above can be avoided with KPMG’s help.
How we can help
Our team is able to assist organisations to develop effective financial risk management strategies, and then execute risk management transactions in a cost effective manner. Having done this KPMG can assist clients with the administrative ‘chores’ of recording, and periodically valuing and accounting for the risk management transactions.