Financial Risk Management
Financial Risk Management
KPMG’s professionals advise on risk, financial engineering, actuarial services & the management of assets, capital, treasury & commodity/energy risk.
KPMG’s professionals advise on risk, financial engineering, actuarial services & the man..
Global concerns about financial risk have been increasing. In this climate, enterprises of all kinds and sizes want robust financial risk management frameworks that satisfy compliance demands, contribute to better decision making and enhance performance.
We offer a broad ranging financial risk management service and help international banks, insurance companies, asset managers, and corporate and public clients identify, assess, manage, report and limit the risks they face.
KPMG’s Financial Risk Management professionals have advised global multinationals with regional treasury centers, as well as local organizations with Singapore-based treasury centers. We recognize that each company is unique, and as such, each service is tailored to address distinct client size, complexity, development stage, and business objectives.
How we can help
We are trusted risk management advisers to the boards and executive teams of some of the world’s leading enterprises. We work with clients to highlight concerns and help improve processes, governance and strategy across a range of matters, including:
- credit risk measurement and management
- operational risk measurement and management
- market and liquidity risks
- economic capital management
- capital adequacy & regulatory services
- actuarial services & financial statement support
- commodity & energy risk management
- financial instruments accounting
- insurance risk assessment
- Basel II and Solvency II transformation
- quantitative evaluation and management of portfolio risks
- financial engineering
- risk management in transactions
- finance and treasury management and transformation
- asset management advisory
|Client needs||How KPMG helped||Outcomes|
|Large Commodity and Energy trading company based in Singapore|
|Validate the effectiveness of FX hedging operations in relation to HSFO fuel hedging operation.||
Used the diagnostic-review methodology to assess the FX hedging strategies to mitigate FX risk arising out of the HSFO fuel hedging operation.
Reviewed and assessed treasury manual, organization and guidelines, internal control mechanisms, and operational processes that were put in place to manage the FX hedging operation.
Determined any gaps in terms of timing mismatch between exposures and hedging, derivative instruments used and capturing of residual exposures.
Benchmarked company AS-IS risk-management situation with leading practices.
Improved the effectiveness in mitigating FX risk arising from HSFO fuel hedging operation with respect to the four types of business contracts in the client’s business model.
Improved Treasury System, segregation of duties and made the risk policies more robust for current treasury operation and provided flexibilities for future expansion in functions.
|One of the largest Oil and Gas Multi-national based in Malaysia|
|Develop a 'cutting edge' treasury and liquidity management framework to centralize treasury operations.||
Assess & validate documented process flows & existing business IT architecture.Assessed and validated documented process flows and existing business IT architecture.
Designed and developed an Integrated Financial Shared Service Centre model and business case.
Developed an implementation roadmap.
The project had substantial benefits for the organization in that it enabled liquidity and financial risk to be centralized, viewed and managed on a group-wide basis.
Savings in interest paid on external funding was expected to be ±US$100 million per annum.
Centralization of treasury functions, increased automation and standardization of processes implied that business unit finance staff were expected to be reduced by approximately 30 percent.
|Leading Real Estate firm based in Singapore|
|Assistance in the identification of the most appropriate accounting treatment for hedges of foreign exchange exposures.||
Identified the payment process and possible accounting treatments for hedges of foreign exchange risks, which included:
Designation of hedged items.
Analysis of possible hedging strategies in line with the management's objectives.
Draft generic documentation on hedge accounting for Cash Flow hedge and Net Investment hedge applied to foreign exchange risk.
Elaborated scenarios and analyzed the impact of different accounting options on the profit and losses.
Built awareness of hedge accounting impacts and common treatment on derivative.
Provided a choice of the most efficient accounting model in line with the group's risk financial objectives.