Risk Management

L&V's comprehensive Risk Management program effectively provides you with business models and tools to achieve your strategic objectives. We formulate policy, practice and internal controls tailored to your specific organizational structure and needs. We develop a business risk profile based on your organization's level of appetite for risk. We document the appropriate models, applications of practice, and collaborate with your foreign exchange, insurance and institutional providers. As the challenges and demands under FASB and IFRS define financial disclosures, we interface with your treasury and financial accounting departments to optimize their efficiencies within your organization. We define and enable effectiveness measurement of derivatives under ASC 815 (formerly FAS133)/IAS39 reporting.

L&V's programs encompass:

• Feasibility of your current hedge practices and procedures
• Identification of a risk profile, sensitivity analysis and appetite for level of risk
• We will develop, and execute policies and procedures.
• Identification of exposures - This may include currency risk, interest rate risk or commodity risk. Within each area of exposure, under accounting guidelines, further granularity of risk is defined under transactional, translational, and economic. A businesses appetite for risk can also be determined by economic scale and economic scope.
• Mitigation of exposures - This includes hedge accounting treatment defined under cash value, fair value and net investment hedge practices. We document and define hedging techniques, including natural hedge, netting opportunities, and specific derivative instruments.
• Measurement of exposures - As ASC 830 & ASC 815 (formerly FAS52, FAS133), IAS39 define reporting parameters, we have developed business models to meet your financial reporting requirements.
• Insurance package - We take charge of broker bids for your corporate insurance program. We will perform RFQ's, evaluate the provider responses, and report our findings using benchmarking within your industry. We make the appropriate recommendations to bind to your Corporate Governance or Audit Committee.
• We provide you with the narratives required under Sarbanes-Oxley.