Systems Development

A medium sized wire and cable company has an unstructured partial hedge program with incomplete record keeping. At year-end their auditor declines to accept the open derivatives transactions as hedges, with adverse financial consequences. They need experts who understand how to run risk management systems that fully capture risks and provide the record trail their auditors require. They contact us to:

• help them build a more robust risk management program that controls the risks their policies require and satisfies the auditors
• enable their teams to support a program with the help of education and adequate resources

After analysis we provide guidance to their teams that helps them put in place a program of hedges linked to commercial transactions. We assist them to identify a third party vendor to provide a records control and accounting system that will verify commercial-hedge links and prove hedge accounting qualification. To assure a smooth system implementation, we assist their team with work required by the vendor to successfully adapt and install the system.