• Using risk valuation: beware a false sense of security

    Whatever risk valuation techniques one chooses to employ, there is still no substitute for independent thought or discussion. This article looks at the limitations of popular risk valuation models and how different treasuries approach measuring and defining risk.

  • Weather risk

    Weather risk has long been considered as a risk that needs only be calculated by energy companies and snow ploughing businesses. While these clichéd businesses understand how the weather directly affects their trade, many other corporates are now considering the more subtle impact the weather can have on profitability and efficiency.

  • Cutting through the confusion on counterparty risks

    Counterparty risk is not just about how safe your banks are. Companies today have a variety of counterparty risks and different ways to measure them. We take a look at the nature of these risks, the reliability of those rating the risks and how to lay the risks off.

  • From IAS 39 to IFRS 9

    Accounting standards are a necessary nuisance in the treasury and the eagerly awaited replacement of IAS 39 in the form of IFRS 9, along with potential changes from the FASB/IASB convergence project, is due soon. What’s behind the process and thinking? This article explains the complexity driving a need for simplification of accounting standards.

  • The dollar – where do we stand?

    Exchange rate movements have a huge impact on corporate profitability. Volatility, in recent times, has impacted acquisition and investment decisions as well as day-to-day operations for corporate treasurers. What happens to the dollar is a key issue for most companies whether it is their home currency, or if they need to hedge their own currency against it. So what do you need to know about the dollar in 2010 and beyond? What kind of volatility are we expecting this year? Will it remain the global reserve currency for the foreseeable future? In this special article, we ask the experts and evaluate what they are saying.

  • Laws and legislators, regulations and regulators

    There has been such a volume of planned and emergency intervention in the past two years of financial crisis that some observers might think we should be entering a period of consolidation and even reflection on what has actually happened, adopting a more sober view of the future.

  • Credit insurance

    All businesses offering credit to their customers are taking a risk that they may not get their money back due to insolvency or long-term payment default. As a result, many – especially those which export goods and extend credit overseas – rely on credit insurance to mitigate this risk and ensure that their receivables are covered in the event of non-payment. We look at how current market conditions have affected the availability of credit insurance.

  • Derivatives documentation

    In this month’s Risk Management article we take a look at the standard documentation used for over-the-counter traded derivative instruments such as swaps, options or forwards, focusing in particular on the role of the ISDA Master Agreement.

  • Inflation hedging

    While inflation risk may not be a top concern today, inflation is widely expected to rise when economic recovery arrives. We explore the two types of instrument most commonly used to hedge inflation risk: inflation-linked bonds and inflation-linked swaps. We also provide an overview of the key players in the inflation product market.

  • No risk; no technology

    From the discovery of fire to automated back-office, investment and trading programmes, new technology has brought benefits – and risks. Mitigating them is part science, part art… and often a bit of luck. In this article we present an overview of technological risk and take a view from an industry professional as how best to mitigate it.