Brady’s CRisk and the CFO – Ensuring Effective Liquidity and Counterparty Credit Policies

When it comes to the various risks that a commodities-focused company must deal with, credit risk is likely an area that staff from several departments are involved with in one way or another. It’s not just credit specialists but treasury, traders, finance and many other areas of the business that need to track various forms of credit exposures and issues. The CFO will also need access to this information including to focus on things like cashflow, liquidity, exposures and more, across different business units and different currencies. As Andre Montellano-Heins, of Brady told me – “credit risk is an independent function in most companies and usually falls under the CFO’s responsibility. The CFO manages the company’s funding needs, financial statements, and comprehends the cost and revenue sides that relate to credit risk.” That includes overall daily responsibility for margin calls and ensuring liquidity in various currencies, and the preparation and use of cash flow projections – “all things that Brady’s cloud energy risk management solution can handle,” he told me. Andre has a background in, and significant experience of, credit risk having worked in a variety of related positions for energy firms until joining Brady quite recently as a customer… continue reading