Our cutting edge approach to risk management is statistically driven, providing an objective platform from which the cost/benefit of hedging can be accurately assessed.
The proprietary methodology used by R^2 is a powerful decision and documentation tool that is designed to optimize the performance of corporate hedge programs. R^2 analytics are powered by SunGard’s Kiodex Risk Workbench, an industry leading risk management software platform. This platform also allows us to support Client accounting and internal reporting functions with SAS 70 certified curves and valuations. The R^2 Hedge Program incorporates key elements of market, option pricing and money management theories. The methodology is statistically rigorous and provides a disciplined framework from which hedge decisions can be quantified to document compliance with Corporate Governance, FASB and Sarbanes-Oxley initiatives.
Across a broad range of commodities, R^2 can:
- Develop a hedge program that is tailored to match your objectives and risk tolerance.
- Identify optimal price/time thresholds and update them in response to changing market conditions.
- Provide daily monitoring of hedge thresholds to ensure timely response to market opportunities.
- Identify those hedge strategies with highest expected values.
- Bring price transparency to the transaction process.
- Act as agent for or 3rd party witness to your transactions to minimize errors and confusion.
- Document the cost/benefit of the hedge strategy for future reference.
Read about our industry standard reporting and accounting tools. >>