Most New Zealand organisations are exposed to financial risks. Interest rate, foreign exchange, credit, commodity and Treasury operational risks must be well managed.
Robust financial risk management frameworks
KPMG works with a broad range of corporate and public organisations to develop robust financial risk management frameworks that satisfy compliance demands, contribute to better decision making and enhance performance.
Our team understands the complexities of the financial markets and the increasing demands of financial reporting (including NZ IAS 32, NZ IAS 39, NZ IFRS 7, and the upcoming IFRS 9).
We also have significant experience with leading practices in relation to managing Treasury activities. We take a practical and professional approach to assisting with Treasury issues and challenges.
Hedging strategy and risk control framework
- Identifying and quantifying existing financial risks using a variety of leading practice metrics.
- Modelling potential impact from financial market price volatility on earnings and revenue.
- Identifying potential hedging instruments and methods to effectively mitigate price volatility.
- Analysing hedging instrument feasibility considering expected hedge costs, benefits, and aggregate exposures.
Risk control framework
- Establishing potential risk control mechanisms for hedging activities based off industry accepted practices
- Establishing enhanced risk reporting tools that can be articulated in a clear and concise manner to senior management and the Board.
We have gained strong experience of the above by:
- conducting External and Internal Audits of Treasury Functions
- undertaking Treasury Policy Compliance Reviews
- implementing NZ IAS 39 and treasury systems
- undertaking financial Instrument valuations.
KPMG's global services
The KPMG Financial Risk Management team is an integral part of KPMG’s global advisory team that specialises in Finance and Treasury Management advice.
In New Zealand we leverage the best of both worlds: our global leading practice methodology and tools and our strong experience of managing financial risks with New Zealand companies. KPMG in New Zealand can access resources from our global network of over 140 countries.