The following articles on risk management, hedge accounting, and other topics may be freely downloaded with our compliments:
- Modern Corporate Risk Management, a new presentation summarizing the latest thinking on FX risk management, including an analysis of how economic and industry factors drive differences in FX hedging. Includes a list of 7 common corporate FX mistakes. 238K pdf.
- Corporate Commodity Risk Management explains how commodity hedging differs from FX hedging and provides a process for corporates on developing a practical hedging program. 234K pdf.
- A Metric Approach to Risk Management outlines a risk management policy framework applicable to corporate commodity, FX, interest rate and investment risks. It addresses the major fault of many corporate policies — the lack of metrics showing the value-added that the risk management is providing. Without metrics, the default metric will always be whether or not the hedges made money, a loser's game for treasury. 782K pdf.
- The Group of 31 Report: Core Principles for Managing MNC Foreign Exchange Risk is based upon a study sponsored by General Motors with 31 world-class companies. This detailed study shows how these companies write their FX policies and manage their FX risks, highlighting 12 principles. It also shows how these principles can be applied to other companies based upon their own particular circumstances. 234K pdf.
- Treasury Performance Measures: Metrics and Benchmarks is an expanded version of a presentation given by Jeff Wallace at the October 2003 European MNC EuroFinance conference in Barcelona. It provides specific metrics and fair benchmarks for foreign exchange, interest rate risk, and cash management. 508K pdf.
- Model Trading Mandate Letter. All derivative trading should be authorized under a trading mandate letter. In an editable Word format, this model letter will lead to meaningful conversations with your bankers about how willing they are to restrict your traders' deal making to your policy and what happens when trades go bad. 53K doc.
- FAS 133 Revisited, which shows how to master this complex standard, including dealing with increased scrutiny on critical terms. 721K pdf.
- Basic Concepts of FAS 133. A presentation on FAS 133 that was given to the Conference Board. 190K .pdf
- Major Differences between FAS 133 and IAS 39. There are many important differences. 158K pdf.
- Derivative Accounting & Hedging Under FAS 133 is a concise introduction to the complexities of FAS 133. The basic concepts of FAS 133 are explained, including how effectiveness testing actually works. Strategies are given for minimizing termination risk, P&L ineffectiveness and P&L forecast error. An earlier version of this article appeared as the FAS 133 chapter in The International Finance and Accounting Handbook (2003, John Wiley & Sons). 1,219K pdf.
- Option Hedging Strategies under FAS 133 provides a summary of FAS 133/G20 option accounting with 133 paragraph and DIG issue references. It discusses various option hedging strategies, and uses GTA FX benchmarking to show that active option management is a mainstream corporate practice that is actually a better and more conservative approach than a buy-and-hold strategy. 94K pdf.
- Dual-Spot Effectiveness Testing describe a little-known effectiveness testing technique that is quite useful when there is uncertainty around the timing of the hedged forecast but the settlement is certain. The technique is also useful for hedging commodity exposures that do not have a forward curve.
- SWIFT for Corporates, a presentation given by GTA and Axletree Solutions on the advantages of joining SWIFT and how the connectivity to SWIFT is achieved. 589K pdf.
- Using Technology to Reduce Transactions Costs is a revised version of a presentation given to the Treasurer's Council of the Conference in late 2007.
- Payment Factories, what they are, how they work, and the major implementation issues. 114K .pdf
- Selecting Treasury Workstations, 121K .pdf
- Treasury System Tips, which supplements the Selecting Treasury Workstations presentation with a focus on system implementations. html page.
- Treasury Intranets, an old, but still useful, summary of how treasuries are using their intranets to improve communications within their organization. 792K .pdf