With our Risk Management Support Service, Treasury Services can offer permanent access to our specialised expertise. This is interesting for organisation that want to increase the quality of their risk management function or organisations that do not have a Treasury organisation of their own.
High added value can be achieved in the area of managing strategic risks or economic risk. Strategic risk management consists of managing risks with a long term time horizon. It goes much further than managing transactional exposures or translation exposures.
For many years, newspapers showed profit warnings, earnings reports being far less than expected, and even bankruptcies from companies who are all brilliant in their markets, but all in problems with their financial risks. We are able to eliminate these problems, proving that statements like “these risks can not be hedged” are false.
Concepts like “Value-at-Risk” has been proven dangerous. Read our article on this subject (NL). It is also dangerous to believe in market views, because in the end you will find out that you end up in a 50 % probability situation. We believe that managing these non-core risks is a quantitative process.
With our Risk Management Support Service we are able to reduce the volatility on your earnings, making your results better predictable, and making them independent from non-core risks.