Enterprise financial risk management

Enterprise financial risk management

The company’s successful operations in the market, its ability to achieve the competitive advantages and increase the operating efficiency, depends, primarily on the promptness, success and timeliness of potential risk management.
Unfavorable market changes may give rise to short-term or long-term financial difficulties in the company. The properly built corporate system of financial risks management will help the company to address a number of important business tasks, such as:

  • determination of target financial performance indicators based on the level of the company’s risk tolerance;
  • determination of the methods of risk management and hedging;
  • improvement of forecasting and measurement of market risks;
  • reduction of profit volatility
  • upgrading of the company’s credit rating;
  • increase in efficiency of the processes of procurement, logistics and sales at the expense of better developed analytical function. 

As a part of building of the financial risk management system, KPMG experts will fulfill the following tasks:

  • identification and simulation of financial risks, including currency, interest rate, commodity and other economic risks;
  • Identification and building a model of alternative strategies of risk mitigation (e.g. financial hedging, insurance, balancing, etc.) and associated risks, costs and benefits;
  • rendering assistance to the management in identification of suitable for implementation systems of risk management, changes in prices on commodities and energy resources, conducting of analytical study and development of assumptions to be used in the simulation process;
  • rendering assistance to the management in identification of the operating and functional requirements, preparation of the request for proposals that will be sent to potential suppliers and organization of demonstration of the suppliers’ information systems;
  • rendering assistance to the management in the process of preparation for implementation and immediate implementation of the selected systems;
  • development of the regulatory and procedural framework in the area of financial risk management (Methodology for Financial Risk Identification and Assessment, Financial Risk Management Policy , Hedging and Insurance Policy, etc.)

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