Risk Assessment Crucial in Finance Industry, Says PwC Canada
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In today’s complex financial landscape, companies are facing a growing array of risks that can have far-reaching consequences for their bottom line. From volatile foreign exchange rates to fluctuating interest rates and commodity price uncertainty, businesses must be equipped with robust risk management strategies to protect their economic resilience.
Effective Risk Management Strategies
According to PwC Canada’s financial risk management team, starting with strategic objectives and risk appetite is key to identifying and pursuing new opportunities while mitigating exposure and risks through effective financial risk management. The firm’s multidisciplinary team of experts in financial instrument accounting, valuation, and quantitative modelling, as well as corporate treasury professionals, provides organizations with the resources they need to protect and create value.
Financial Risk Management Services
PwC Canada’s financial risk management services include:
- Policy development
- Strategy implementation
- Process control
- Technology selection
- Valuation
- Risk modeling
The team also assists companies in navigating complex accounting rules and disclosure requirements related to financial instruments, including:
- Hedge accounting
- Derivatives
- Newly invented products and transactions
Model Risk Management Frameworks
Complex financial instruments give rise to many financial risk and valuation issues that require intricate models to understand, manage, and quantify. PwC Canada’s team can help companies develop best-in-class model risk management frameworks, validate financial risk and valuation models, and assist with audit procedures.
Corporate Treasury Services
In addition, the firm’s corporate treasury services include:
- Strategy development
- Internal audit support
- Cash and liquidity management
- Risk management
- Technology implementation
PwC Canada’s deal support services also navigate clients through the transaction life cycle from pre-close diligence to post-deal operations.
The Importance of Treasury Function
The findings of PwC Canada’s 2021 Global Treasury Survey underscore the importance of treasury function in today’s complex financial landscape. The survey highlights the need for treasurers and chief financial officers to stay on top of current and emerging issues, such as:
- Commodity trading
- Foreign exchange volatility
- Market complexity
- Changing regulations
Conclusion
In conclusion, risk assessment is crucial in finance industry, and companies must be equipped with robust risk management strategies to protect their economic resilience. PwC Canada’s financial risk management team provides organizations with the resources they need to navigate complex financial instruments, develop effective models, and stay ahead of emerging risks.