"Redbridge brought the experience and guidance required for this project, whilst approaching it in a very collaborative way… ready to roll the sleeves up with us. As a result we got the right outcome in the right timeframe."

Ben Hall
Director of Group Finance

Engagement overview

  • Review exposure profile and support revised hedging policy
  • 21 currencies and Global scope.
    Range of ship management and marine services with varied currency profiles.
  • Hedging horizon: 3 years

Objectives

  • Identify & analyse significant FX transactional exposures faced by V.Group
  • Assist management in redefining the FX risk appetite of key stakeholders
  • Prepare an implementation roadmap for the new FX risk management policy

 

Results

  • Revised transactional FX risk management policy in line with current business circumstances and key stakeholders’ risk appetite
  • Clear policy implementation roadmap
  • Guidance on operational improvements in Treasury

Methodology

  • Data analysis to identify significant FX transactional exposures to V.Group
  • Stratification of FX exposures by homogeneous characteristics (e.g. “known” versus “highly probable”, by line of business, by predictability of currency flows etc.)
  • Scenario planning of stratified FX cash flows to provide an indication of exposure under specific policy parameters and assist management determine their required risk appetite parameters.
    Documentation of the new FX risk management policy
  • Preparation of a roadmap to align existing hedges in place to the new FX Treasury Policy
  • Documentation and communication of other potential improvement areas identified

Value added by Redbridge

  • Project management in collaboration with senior management and operational teams
  • Tight schedule control and adherence to agreed timeframe
  • Experienced project team with suitable seniority level
  • Key stakeholders’ expectations management
  • Deep knowledge and expertise in treasury FX strategy and operational treasury best practice
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