Risk management requires a clear understanding of the economics and finance of risk combined with the ability to efficiently perform numerically intensive analysis. Our case experience ranges from the assessment of insurance risk to hedging foreign exchange, power, and natural gas exposures. In addition, we often are called upon to assist with the identification of proper risk management activities, and to distinguish these from tax-motivated activities disguised as risk management.
Computationally Efficient and Graphically Rich Tools to Assist Clients
Our software development abilities allow us to create a wide variety of tools that allow us to explore complex problems completely and allow our clients to visualize these problems for themselves. …read more
Improving Internal and External Communications
Careful communications about a corporation’s financial risk management program can be as important as the design of the program itself. Cambridge Finance Partners worked with a major merchant power generator to better communicate its hedging strategy, internally and externally. For example, we stressed education about the dynamic nature of hedging and the dissemination of relevant performance metrics (see example, here).
Procter & Gamble et. al. v. The United States of America
Robert Noah, an expert witness for the United States, was asked to address the purported non-tax business purpose of a series of transactions involving an inter-company transfer payment, pre-payment for goods, and related impacts on risk management and, in particular, foreign currency hedging. Dr. Noah’s analysis addressed valuation, hedging efficiency, hedging costs, and business purpose for transactions related to significant claimed tax reduction. The Court ruled in favor of the United States in summary judgment.