Why Risk Management
We firmly believe that corporations should concentrate in maximising their value creation
capability by using their competitive advantage in risks they know how to profit from, and
minimise the risks where they have less competitive advantage.
Capital comes in two forms financial and mental. Eliminating negative tails with appropriate
hedging policies, will safeguard both types of capital. It will not only reduce financial risks
but also free management's time.
Markets are unpredictable by nature and containing unwanted risks is the right policy to ensure
long term profitability.
Areas Covered:
- Commodity Price Risk Management
- Functional Currency
- Group Level Foreign Exchange Risk Management
- Interest Rate Hedging and Development of Debt Policy
- Asset-Liability Management
We have consistently found that volatility in foreign exchange rates can significantly greater
than local profit margins.
