administration & outsourcing

Difficult accounting standards, changing derivative regulations, expensive software, and scarce talent often conspire to create a high cost to running an effective hedge program.

Because hedging is a vital component of business strategy, we have designed a proven approach for outsourcing a function which would otherwise be expensive to set up and maintain.

Building the required infrastructure to manage hedge-related activities is a major challenge to implementing effective hedging programs. Many companies cannot justify the initial costs of hiring required resources, implementing new IT systems, and designing new processes in a capital-constrained environment.

Eco+Risk helps its clients by outsourcing hedge program functions which may be expensive to implement and may not align with a company’s core competencies. Our outsourcing platform is built on the experience of our people using proven technologies and provides clients with an immediate vehicle for executing their hedge strategy. From confirmation and deal entry to risk and financial reporting, we offer a cost effective, reliable solution for managing our clients’ hedge programs.

Sample outsourcing services include:

  • Pre-execution support;
  • Transaction confirmation and contract management;
  • Tailored risk reporting and exposure monitoring analytics;
  • Hedge accounting and tax requirements (e.g. hedge documentation, regression and other effectiveness tests, disclosures, etc.);
  • On-demand reporting, including customized monthly financial reporting packages; and
  • Access to market information and price discovery.