Risk Advisory
By implementing an ongoing risk management program, clients gain lucidity of purpose, better risk mitigation, and potential cost reductions through improved transaction structures that eliminate extremes in commodity and emissions transactions. Part of our service is the development of policies and procedures for transparency of program implementation.
Subsequent to program design and ratification, we provide our clients with risk advisory services to support the execution of a risk management program. Our highly-refined service includes:
- Deployment of a Web-Based Management System - Pace Global has developed a proprietary risk management system to measure and monitor the risk exposure of its clients. It is a web based application that subscribers can securely access via the Internet. The system can support multi-commodity risk, multi-book structures, and is highly-customizable to client needs.
- Commodity Market Advisory – A regular review of market conditions and their implications relative to (discretionary) hedging activities.
- Monitor Potential for Risk Threshold Encroachment – The potential for unfavorable impacts on our clients’ costs/revenue and mark-to-market outcomes are quantified daily, and we will monitor this risk against tolerance levels ratified by senior executives.
- Hedge Structure Recommendations – In accordance with program protocols, we will provide specific recommendations when required to mitigate unfavorable outcomes.
- Track Portfolio Positions – As hedges are executed, they need to be incorporated into the risk estimates as soon as possible via RiskSpectives®.
- Executive Participation in Risk Meetings – Pace Global also makes available senior representatives to participate in-person (or via phone) in our clients executive risk management committee (“ERMC”) meetings.
For more information, please contact:
Jim Diemer at 703.818.9100 or via email.