Market & Commodity Risk
Financial and commodity markets are among the most volatile in the world. Predicting the impact of the financial crisis on foreign exchange rates and interest rates is a global debate. The failure to understand one’s risk profile and true exposure from a profitability, operational and cash flow perspective can lead to significant losses and ultimately, financial collapse.
Helping your organization adapt and manage the risks associated with volatile markets is the role of Protiviti’s Market and Commodity risk professionals. We help ensure that management has the tools, methodologies, processes and controls necessary to properly evaluate and manage their trading and hedging activities as well as other businesses affected by market and commodity exposure.
Our services include:
Trading Area Risk Management Assessment/Process Views
Protiviti will perform a full review of the risk management policies, processes risk systems and controls and provide insights into the key risks assumed, the approach to measuring, managing and reporting risk, and the effectiveness of the systems, organizational structures and processes in place to meet current and future strategic objectives.
Asset Liability Management (ALM) & Liquidity Risk Management
Protiviti can perform process reviews to determine if your institution is adequately measuring and monitoring its interest rate and liquidity risk positions. We have experience with various modeling platforms and developing relevant assumptions appropriate for your size and complexity. We can also provide support in creating meaningful management reporting and analytics.
Investment Portfolio Risk Management
Protiviti will assist by evaluating the alignment between the trading/hedging portfolio and client governance structures. We also perform analysis of the risk policies governing market and commodity trading and hedging activities.
Liquidity Risk Reviews
Protiviti performs evaluation & implementation of processes and controls to manage interest rates, assess liquidity, and forecast cash flows.