Hedging

Protecting cash-flows, while preserving the upside that drives growth.

We take a governance first approach to risk management and hedging, and seek to understand your business, your risk appetite to talior make a risk strategy that goes beyond hedging. The final step is hedging, something that should be transparent, uncomplicated, and bespoke. This does not always mean forward contracts and trading, but our expertise stretches across the strategic and trading spheres ensuring that you review a robust hedging strategy aligned to your interests.

Policy & Governance Architecture

Codify risk appetite so every hedge supports strategy, never just reacts to headlines.

What we do

Draft hedge policy, delegation limits and approved instruments

Align treatment with IFRS 9 and AASB 9

Embed behavioural guard-rails (pre-commit bands, red-team challenge)

Benefit

Directors gain clarity; regulators see a living framework

P&L volatility minimised, restatements avoided

Loss-aversion and anchoring neutralised before trades are booked

Strategy Design & Instrument Selection

Explore strategic alternatives in addition to financial hedging, map exposures, choose the right mix of forwards, options and structured products.

Exposure mapping – Match cash-flow forecasts to underlying market drivers (FX, power, metals, carbon, rates).
Scenario & VaR modelling – Quantify downside under spot, curve-shift and tail events; set hedge ratios accordingly.
Cost–benefit scoring – Premium, credit, margin and liquidity costs weighed against protection provided.

Execution & Market Access

Achieve best price and minimise slippage.

Capability

Multi-dealer RFQ and electronic platform access

Exchange-traded & OTC futures & cleared swaps for credit-efficient hedging

Live TCA dashboard benchmarking every fill to mid-market

Benefit

Improved execution price

Lower counterparty capital charges

Immediate feedback and dealer scorecards

Hedge Accounting & Reporting

Smooth earnings and satisfy auditors without drowning finance teams in spreadsheets

Documentation packs – Prospectus, designation memo and effectiveness-test templates delivered pre-trade.
Δ-testing automation – 80 % reduction in month-end close effort.
Dashboards – Real-time mark-to-market, coverage %, and re-balancing alerts pushed to CFOs and Treasury.

Monitoring, Optimisation & Workshops

Keep the programme relevant as markets and the business evolve.

Quarterly “look-forward” reviews and re-hedge windows.
Volatility triggers that opportunistically add or roll positions.
Training sessions for finance, procurement and board members—translating Greeks and basis risk into plain English.

Outcomes

Cash-flow certainty: lock acceptable cost or revenue bands up to five years out
Earnings stability: hedge-accounting passes first-time, protecting EBITDA targets
Cost transparency: execution savings and no hidden dealer margins
Strategic agility: optional upside retained through collars and participatory structures

Ready to turn volatility into a managed asset?

Contact Resonance Risk to build or recalibrate your hedging programme.