Derivatives and risk management

Equipping treasury functions with derivatives capability to optimise risk management

Our Treasury Services experts provide regulated advice on derivatives to enhance the performance of your treasury function, adding greater flexibility and diversity of options to deliver more effective and efficient risk management solutions.

We develop tailored risk management solutions to support our clients’ objectives whilst navigating their constraints.

Our solutions include:

• Hedging strategies
• Arranging ISDAs
• Independent valuations
• Accountancy services
• Training

Hedging strategies

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.

Arranging ISDAs

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.

Independent valuation

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.

Accountancy services

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.

Training

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.

Please contact us to find out more.