TREASURY RISK CHALLENGES

Effective forecasting enables treasury to more accurately anticipate areas where risk needs to be managed. Modelling must create a clearer understanding of anticipated cash flows and liquidity, as well as the consequences of fluctuations in commodity prices, interest rates, forecasted demand or foreign exchange rates.

Forecasting models must assist the treasury function by updating and reviewing potential exposure levels with regards to contractual commitments, repatriation of funds and how changes in forecasted future cash flows can impact on the financing and valuation aspects of the business.

TREASURY RISK SOLUTIONS

Forecast Vision has assisted clients with modelling their potential exposures, including debt coverage ratios, inventory levels, debt structuring and commercial dealings with counter parties.

Forecast Vision can track how corporate KPI's can be managed over time to fall within predefined targets, thus assisting with overall risk management goals.

TREASURY RISK EXAMPLES

Structuring a medium-long term interest rate and derivative strategies of a leading resource company based on alternative scenarios of likely company incoming cash flows and supplier commitments.

A major importer of textile garments reviewing its international hedging and revenue handling strategies.