V.Group

V.Group Redefines FX Risk Strategy With Redbridge

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