Welcome to our new clients
We would like to welcome the following new clients who selected Visual Risk during 2010:
Please click here for a comprehensive listing.
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Visual Risk announces new data agreement with Thomson Reuters and ICAP
We are pleased to announce that Visual Risk has recently partnered with Thomson Reuters and ICAP to provide our clients with a new, fully integrated market data solution. This partnership brings together two best-of-breed services to automatically deliver data directly into your Visual Risk system.
This service significantly streamlines otherwise time consuming data upload processes and ensures a far greater degree of data integrity. The data available covers interest rates, FX and commodities. It also includes difficult to obtain prices such as currency basis swap rates, basis spreads and volatilities.
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IFRS 9: the convergence of hedge accounting and risk management
The International Accounting Standards Board (IASB) will shortly replace the IAS 39 accounting standard with IFRS 9. This new standard aims to simplify onerous hedge accounting practices which to date have been difficult to apply. Most importantly, the new standard seeks to deliver greater alignment between hedge accounting and real world risk management practices.
The key simplifications will likely include the abolition of the 80% - 125% testing bounds along with a shift to more qualitative measures for prospective hedge effectiveness testing. Those who use options as part of their hedging strategy will also welcome IFRS 9 as it will reduce the P&L volatility associated with movements in the time value. With these and other simplifications, corporate treasuries will finally be able to refocus on the core task of managing risk rather than performing overly prescriptive quantitative tests.
Visual Risk is constantly monitoring the evolution of IFRS 9 and believes the known changes can be handled by our system. If you are considering the early adoption of IFRS 9 in July 2011, please contact us for further information.
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Fonterra: the challenge of quantifying dairy price risk
Based in Auckland, Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by more than 10,500 New Zealand farmers. The company is responsible for around 30% of the world's dairy exports and is New Zealand's largest company with revenue exceeding NZ$16 billion.
Fonterra's earnings are heavily exposed to movements in the international price for milk and milk related products. Recently, the commodity risk management team at Fonterra embarked on a project to quantify and concisely report the annual variance in 'total milk revenue' in USD and NZD terms. Visual Risk was selected as the engine for regularly performing a multi-factor simulation based Cashflow-at-Risk (CFaR) analysis.
Hamish Keston, Commodity Risk Analyst, Fonterra, explains some of the project objectives and challenges:
"The starting point of any risk management activity is to accurately understand your exposure and quantify the risk associated with it. Building on this basis you can then make informed decisions on the strategies and approach that you will take. Fonterra obviously has a large exposure to dairy price risk but understanding the nuances of this is a complex task that requires the right tools" |
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New Functionality Focus:
Cash Management
Visual Risk now includes a powerful new cashflow forecasting function which leverages our native cashflow engine to generate accurate forecasts combining treasury and non-treasury cashflows. Features include:
- Bank account and bank account pool management
- Import of bank account balances
- Import of non-treasury cashflows to complete the cash picture
- Calculation of cash positions at account, pool and consolidated level
- Flexible reporting layout options and date bucketing capabilities
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Bank of Cyprus
