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We listen to each client’s unique needs and use the full spectrum of our resources to create long-lasting solutions.

Services

Managing financial volatility caused by fluctuating metals prices can bring major benefits.  Whether it be starting a new price risk programme or improving an existing one, we’ve learned that nearly every client’s business is unique, and so are their metal price problems.   We offer a wide range of services and access to a wide industry support network that can be tailored to each client’s needs:

Benefit: Predictable Profitability

Controlling metal price volatility means more stable financial performance that is less dependent on metal price trends and facilitates the taking of opportunities that were once deemed too risky.  Services that deliver predictability are:

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  • Identifying Price Risk:   Different types of price risk need different mitigation strategies.   Here, the risks are defined, and their sources are identified

  • Modelling Price Risk:  Mapping and quantifying the financial impact of risks based on historic prices and possible market scenarios

  • Determining the Right Management Decision Framework:  Laying out effective risk-appropriate frameworks for timely decision making

  • Enabling Hedge Execution:  Building management and administrative foundations needed to hedge price exposures and manage liquidity risk

  • Hedge Strategy and Forward Market Management:  Guidance on strategy alternatives and adapting them to market conditions

  • Highlight Inefficiency and its Costs:  Defining and making visible the costs of exposures generated by operating and pricing inefficiency​

 

Benefit: Effective Metal Pricing

Businesses that truly understand how metal pricing relates to risk know why suppliers and customers react to different markets and how to benefit.  We can help through:

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  • Addressing Commercially Created Risk:  Assisting commercial departments in detecting risky contracting methodologies and applying best practice solutions

  • Delivering Pricing Workshops:  Training to build an understanding of prices, price risk derived from commercial contracts and how risk can be used both for and against a business

  • Coordination of Commercial & Risk Functions:  Aligning commercial and risk departments so they can make the most of each market situation

  • Creating Visibility of Transactional and Trading Performance:  Enabling performance measurement and the means to make it transparent for management

 

Benefit: Efficient and Explainable Reporting

Efficient reporting quickly conveys what each management level needs to know.  Explainable reporting isolates price volatility from operating results so that the success of risk mitigation and impact of price exposures can be understood.  Services that render this are:

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  • Aligning financial reporting for a risk-managed operation

  • Designing reports and dashboards for user needs

  • Providing temporary transaction management tools to educate users about the necessary data inputs that permit the determination of price risk and the reporting information that is needed to manage risk mitigation

  • Guiding selection and implementation of risk management and reporting systems​​​​​​​​​​​​​​​​​

 

Benefit: Best Practice Price Risk Management and Control

Like any operating function, price risk management needs purpose, structure and control appropriate for the business.  For this we offer:

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  • Purpose-Fit Education:  Training for boards, management and front-line staff on theory, practice and their role in managing risk 

  • Developing Price Risk Management Policy:  Guiding the development of policy that describes the risks that must be managed, how they should be managed and who should do it. 

  • Defining Risk Management Goals and Benchmarks:  Establishing a business’s appetite and tolerance for risk, the targets that must be met and how to measure performance against them

  • Laying Out Structure:  The right structure depends on the tasks and goals set out by the business.  We offer years of insight to guide you to the one best fit for your business

  • Designing Governance and Control:  Effective governance and controls keep the train on the rails and must be capable of adapting to changing business needs​​​​

 

We know that price risk management problems can be complex and difficult to define.  We always welcome the opportunity to talk to you about yours.  Don’t hesitate to contact us so we can arrange an obligation-free discussion.

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