Simple precisely executed concepts are the foundation for our work and the basis of our contribution to our clients' success.

Acquisition and Divestiture

An integrated producer spins off a large downstream fabricator business without its risk management capability. The buyer, a financial company, urgently needs the ability to lay off the substantial daily metal and FX risk it now faces. They require experts who have experience launching enterprise wide risk management programs capable of controlling metal and currency exposures. We are engaged to:

  • model their risks and provide means to track and manage them
  • address gaps in policies, procedures and assist with resources
  • help them identify counterparties and form relationships with third party banks and brokers
  • manage the work flow transition, the education of staff and provide ongoing support

After acting on our recommendations, on day one the newly appointed risk manager is able to control inherited and fresh risk exposures with procedures, policies, bridge systems and broker lines. A principal is on site to assist with transactions and continued education of staff and management. A permanent records control system is well under development.