"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."
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