With increased volatility on the way in 2017…
Be prepared, or be prepared to fail!
The return of volatility in 2017 is now a key issue for treasurers and boards across the globe. With the exception of Brexit and the US election, 2016 was dull and uneventful! Rochford see ample opportunity for a significant rise in volatility in 2017, with any one of the reasons below being the potential trigger.
Have you stress tested your financial risk management processes, systems and policies to cope with extreme volatility? Are they still fit for purpose? Be prepared, or be prepared to fail!
For most businesses in Australia, the summer months present a great opportunity to start work streams that have been on your agenda for months. Rochford encourage you to make the most of this time and in turn increase the effectiveness of your treasury function:
- Implement a proactive and dynamic hedge policy
- Develop processes and systems to improve cash flow visibility
- Stress test and quantify hedge effectiveness
- Review/implement a business appropriate risk management policy
- Build expertise within the business
- Access trusted authorities where time poor
Download Rochford’s recommended approach to a policy and framework review HERE
If you enjoyed this article then access more Thought Leadership by Rochford here!
Kevin Mitchell, ‘Partner – Advisory Team’ at Rochford, the leading treasury advisory house in Australia advising on in excess of AU$20 billion in financial market risk.