PMC was asked to review and comment on the FX hedging processes of a Taiwan-based company, following a recent acquisition by a financial sponsor.
- Conduct extensive on-site discussions with senior management and Business Unit; managers in order to develop an in-depth understanding of the FX and commodity risks generated by the business and how these changed over time;
- Perform a desk review of Group and Business Unit level reporting and hold discussions with Group Treasury to understand the existing approach to managing FX and commodity risk;
- Produce a detailed report which provides a number of recommendations for change to the business’ internal information flows;
- Document the risk management policy.
Results & Recommendations
By implementing our recommendations, the business was able to assess its FX and commodity exposures more accurately, enabling these risks to be identified and managed more effectively.