Governance and Controls

Governance and Controls

Representative Services

Case Studies

Risk Policy and Procedure Development

A mid-size energy trading company was interested in support developing a high-level risk policy to govern two separate trading businesses.  The trading company also needed help documenting the day-to-day activities executed by the front, middle, and back office to develop a detailed procedures manual. These goals were achieved by interviewing key company leaders as well as the front, middle and back office personnel responsible for the execution of the company’s trading mandate to develop a better understanding of operations. The effort delivered two separate documents: (1) a risk policy which delineated the organization’s objectives, trading mandate, authorizations, approved products, and key responsibilities and (2) a detailed procedures manual that supported the day-to-day execution of activities involved in the execution of transactions, recording, and valuing the transactions, control and oversight of trading activity, and accounting for the transactions.

Risk Control Assessment

A medium size agricultural company was evaluating whether to acquire a smaller agricultural trading operation and wanted a better understanding of the maturity of the risk controls environment at the smaller company. Their objective was to understand if there were any major risk control gaps to be concerned with post-acquisition. This goal was accomplished by interviewing trading personnel at the small trading operation and reviewing and assessing the risk controls environment in place at the trading operation. The outcome of this engagement was a detailed documentation of the trading activities, the risk controls in place, and pertinent recommendations on additional controls required to promote a robust risk control environment.