In the wake of the Global Financial Crisis (GFC), Corporate Governance has become a key focus, not just for large organisations but for small to medium sized entities as well.
Corporate Governance relates to the rules around how a company is controlled, whether it is by processes, policies, laws or customs.
Two of the key areas of Corporate Governance are reporting & disclosure, and risk management.
Reporting and disclosure means demanding integrity both in financial reporting and in the timeliness and balance of disclosures relating to the entity’s affairs. Risk management is regularly verifying that the entity has appropriate processes in place to identify and manage potential and relevant risks.
Hedgebook is ideally suited to assist in both these areas of Corporate Governance and is designed specifically to help any business better manage its foreign exchange and interest rate risks. From a reporting and disclosure point of view, it enhances the reporting around treasury giving more visibility to “what if” scenarios as well as better defining an organisation’s current position
For risk management, Hedgebook assists with not only the areas mentioned above but also in compliance with treasury policies, which is a key plank of any organisation’s risk management process. With having online access to valuations for financial instruments, Hedgebook gives greater transparency over risk management issues as well as assisting in making better business decisions. Hedgebook also tells an organisation not only what their risk position is today, but given current market conditions, what their position is in the future.
As we see increased awareness of corporate governance amongst small to medium sized companies, a tool like Hedgebook is putting information in the hands of these organisations at an affordable price.
This not only makes better corporate governance possible for these organisations, while at the same time enabling better decision making in a crucial area of business.
Look out for our next article on better Reporting and Disclosure coming soon.