Advised a regional trading firm

We are delighted to have supported a regional trading firm dealing with commoditities and vessel chartering services

Our Business Risk team performed due diligence risk management and controls review for the Trading and Trade Operations, and Risk Management departments. The team covered key areas such as the following:

• Trade execution to settlement process including trade position and profit and loss monitoring, chartering, pricing or contracts
• Segregation of duties over front, middle and back office as well as existing risk management processes and controls
• Credit risk management including counterparty onboarding due diligence and ongoing credit risk exposure monitoring
• Liquidity risk management including liquidity requirement identification and ongoing monitoring
• Risk assessment and risk response including risk mitigation process and risk transfer requirements
• Escalation procedures

Value added

The due diligence review was commissioned by an acquirer prior to an acquisition. Through the process of reviewing the current practices against established policies and procedures, the Business Risk team was able to provide the acquirer with factual, sufficient information about the entity to reach an informed judgment as to its value for the acquisition.

The team shared insights and industry best practices in areas such as trading and trade operations, overall control environment and risk management. They also highlighted the risks and implications based on their findings and share suggested recommendations to enhance the overall control environment of the entity.