RISK ADVISORY SERVICES

Achieve Budgetary Success

 

 

R^2 is trusted by senior management teams to provide assistance in protecting and creating value. Our patented analytics (The Performance Risk Management System US Patent # 7,822,670 B2) provides them with an enterprise-wide risk assessment from which the firm’s hedge strategy can be developed and the effectiveness of the hedge portfolio monitored. Updated each month, this analysis quantifies commodity price exposures in budgetary terms. It models the potential impact of price on corporate performance through a range of statistically weighted scenarios.

 

Armed with an objective understanding of commodity price risk and the ability to quantify the cost/benefit of each hedge decision, clients are able to confidently seek out and identify attractive hedging opportunities. R^2 helps clients achieve budgetary success by linking hedge portfolio objectives directly to corporate cash flows. Our world class team of professionals is respected for its ability to develop innovative solutions that meet the specific objectives of each client.

 

  • Trading and hedging strategies - R^2 patented analytics answers the questions: Why? How Much? Which Instruments? When?
  • Enterprise specific risk assessments - R^2 models the performance of physical and financial assets to provide management with an objective view of risk, how it has changed and how it might change.
  • Market fundamentals and technical developments - R^2 offers commentary on market developments, insight and other factors that may influence hedge opportunities and strategies.
  • Position management - Our analytics provide a valuable feedback loop that monitors the effectiveness of existing hedges and identifies opportunities that may be used to the client’s strategic advantage.
  • Risk analysis during the negotiations of asset purchase and sales provides clients with a time-sensitive risk profile to assist them with pricing.
  • Risk analysis prior to the construction phase of new facilities is used to develop hedge programs that protect expected operating margins for the completed project.