A hedging policy is a governance document before it is a trading decision, and it has to hold when the market moves against it.
Overview
Who this is for
Treasury teams, finance directors and boards carrying foreign exchange, interest rate, commodity or energy exposure who need a written basis for what they hedge, how much of it, and for how long.
The traditional way
Policy is inherited rather than written. Ratios and tenors are set once, instruments are chosen by whichever bank called last, and the board sees the outcome only after it has happened.
The Audere approach
We start from the exposure in your accounts, not from a product. We quantify what is at risk, test candidate policies against historic and simulated markets, and write the policy so it can be explained to a board and audited afterwards.
How we work
We map the exposure, agree a risk appetite with you, model the alternatives, then set out ratios, tenors, instruments and approval limits in a document you own. We review it on a schedule you set.
What you receive
A written hedging policy, the analysis behind it, a recommended hedging programme, and the reporting a board needs to see that the policy is being followed.
The platform module behind it
Adda Risk Management, the risk-analytics module of the Audere Analytics platform, carries the exposure modelling and scenario testing behind this service. [CONFIRM S7]
Policy written against quantified exposure and measured against the outcome it was set for.
