Control the risk management processes by:
- Using “transparent”, liquid, market-based hedge instruments, eliminating any “mark-to-model” valuation uncertainty.
- Demonstrating prospective hedge performance and actual hedge performance using clear, easy to understand analytics.
- Minimizing secondary risks (volatility, counter-party, spread) by frequent review of the asset values and rate sensitivity and hedging with exchange traded securities with high predictability and almost no credit risk.
- Documenting risk management policies and procedures using proven templates developed by UCM.
- Documenting accounting policies and procedures using examples already approved by the major accounting firms for other users.
- Measuring and reporting actual hedge performance daily using clear analytics.