Risk management is focused on anticipating what might not go to plan and putting in place actions to reduce uncertainty to a tolerable level. At ADIG we take a holistic approach to help you map out the risks your organization faces. We consider numerous risk topics to formulate your unique risk register and management action plan.
Global best-practice hedging & risk management solutions should always minimize market risk and reduce potential loss and should never add to a company’s overall risk profile.
Most entities can design and implement an average-performing hedge solution - the difficulty, which takes skill, is providing one that is cost-effective.
Our philosophy of Dynamic Hedging (vs Static Hedging), which centers around our core objective of "70% Protection and 70% Participation", is combined with our strategic blending of various structuring and execution approaches to ensure we always deliver a cost-effective hedging solution.
Simple ’Vanilla’ at-the-money FX & Commodity Options provide complete protection. However, they are costly, with option premiums as high as 15-20% for 12 months of exposure protection.
ADIG’s Dynamic Hedging Programme is not an outsourced solution, it is a fully integrated, immersive, end-to-end hedge programme. We commence each program with bespoke workshops, which analyze hedge structure design and specific entity solutions. An agreed Master Hedge Policy is developed, and the final solution is run live in accordance with internal control systems, authorization processes, 24/7 market monitoring and execution, reconciliation, plus daily & weekly reporting.
In addition, depending on the amount and sophistication of the exposure managed, ADIG portfolio managers and analysts will spend significant time onshore operating the Dynamic Hedge Programme. There are no other risk management firms like ADIG. As an independent agent representing the client, we are not limited to working with one financial institution - We price across multiple banks and liquidity venues, to always ensure best execution and pricing, resulting in significant savings.
The Dynamic Hedge Programme would require between 90-120 days to fully setup and implement.
The joint ADIG & client Execution Team monitors, executes, and manages risk on a 24/7 basis, which covers the entire global trading cycle.
The joint client & ADIG Risk Management Committee meets weekly to make decisions and authorize the execution of future hedges, the optimal hedge ratio, instrument selection, option strike levels, and all other variables.
The following is an example of the types of data and events the Joint Execution Team considers daily:
Effective treasury and risk management ensures your organization can weather financial storms and sustain long-term growth
Gain a competitive edge by making informed financial decisions and seizing opportunities in a rapidly changing market.
Avoid legal issues and protect your organization’s reputation by adhering to financial regulations and ethical practices.
Streamline financial processes, reduce unnecessary costs, and optimize resource allocation.
Leverage data analytics to make data-driven decisions that enhance profitability and reduce risk.
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Understand the ever-evolving regulatory landscape and how to ensure your organization remains compliant with financial laws and standards.
Explore real-world examples of successful treasury and risk management practices to gain insights and inspiration for your own organization.