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.