Risk Management

Derivatives can provide a wide range of options for managing financial risks. Whether you are looking to hedge a specific transaction or develop a portfolio approach to risk management, our team of experienced advisors have the knowledge and expertise to deliver value through derivative strategies.

We are well positioned to connect our clients with all major European counterparties that are subject to our rigorous credit and investment criteria, with the accompanying transaction support to deliver best execution.

Many financial institutions that act as counterparties to derivatives will provide valuation reports however, managing derivative positions requires reliable independent measurement of value and risk. We have licences with proprietary pricing and analytics providers to distribute valuation reports to our clients for monitoring and reporting exposures.

While hedging financial risks often has the objective of reducing economic volatility, we understand the need to consider how users of financial information also interpret accounting volatility. Our service therefore includes fair value, valuation adjustments (xVA) and hedge accounting solutions as part of our derivatives proposition.

For derivatives to be employed effectively, the benefits and risks must be fully understood by those responsible for arranging and managing them. Training of treasury staff, management, and the Board is therefore essential in supporting a governance framework that controls the use of derivatives. Our response to this need is to offer training packages tailored to the members of your organisation whose roles require them to understand the more sophisticated features of these instruments.