KPMG's financial risk management service is designed to help corporate and public sector CFOs, Treasurers, Controllers, Risk Managers, and Tax Directors achieve best practice processes in their finance and treasury departments.
We can help your organisation to achieve an effective financial risk management framework, provide advice on hedging strategies, the use of relevant hedging instruments, and implement efficient liquidity management systems. Our services are best suited to organisations with significant cash, financial risk, liquidity and funding constraints, international operations, or comprehensive cost-cutting / process improvement initiatives.
Each service represented below is based on KPMG's financial risk management methodology and industry accepted practices. While each service may be delivered as a stand alone initiative, combined activities may provide improved risk integration, coordination, and optimisation.
KPMG has a multi-disciplinary team that has advised global multi-nationals with regional treasury centres, as well as local organisations with Singapore-based treasury centres. We recognise that each company is unique, and as such, each service is tailored to address distinct client size, complexity, development stage, and business objectives.
||How KPMG helped
|Large Commodity and Energy trading company based in Singapore|
|Validate the effectiveness of FX hedging operations in relation to HSFO fuel hedging operation
- Assess the FX hedging strategies to mitigate FX risk arising out of HSFO fuel hedging operation using the diagnostic-review methodology.
- Review & assess treasury manual, organization and guidelines, internal control mechanisms, and operational processes that are put in place to manage the FX hedging operation.
- Determine any gaps in term of timing mismatch between exposures and hedging, derivative instruments used and capturing of residual exposures.
- Benchmarking of company AS-IS risk-management situation with leading practices.
- Validation of FX hedging operations enabled client to improve the effectiveness in mitigating FX risk arising from HSFO fuel hedging operation with respect to the 4 types of business contracts in their business model.
- Improvements in Treasury System, Segregation of duties & 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 & liquidity management framework to centralise treasury operations
- Assess & validate documented process flows & existing business IT architecture.
- Design & develop an Integrated Financial Shared Service Centre model and business case.
- Develop the implementation roadmap.
- The project had substantial benefits for the organisation in that it enabled liquidity & financial risk to be centralised, viewed and managed on a group wide basis.
- Savings in interest paid on external funding was expected to be ±US$100 million pa.
- Centralisation of treasury functions, increased automation & standardisation of processes implied that business unit finance staff were expected to be reduced by approximately 30%.
|Leading Real Estate firm based in Singapore|
|Assistance in the identification of the most appropriate accounting treatment for hedges of foreign exchange exposures
||Identify the payment process and the possible accounting treatments for hedges of foreign exchange risks which include:
- 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 & Net Investment hedge applied to foreign exchange risk.
- Elaborated scenarios & analysed the impact of different accounting options on the profit & losses.
- Awareness of hedge accounting impacts & common treatment on derivative.
- Choice of the most efficient accounting model in line with the group's risk financial objectives.
Head, Risk Consulting