THE BUSINESS ISSUE

Every month the client - a large Australian commodity trading company with strong international presence around the Globe - held Market Risk Committee (MRC) meetings with the most senior people in the business presented. The task of the Corporate Risk Unit was to collect, compile, analyse and present the data in a precise and concise format prior to the MRC. The resulting document distributed among the MRC members formed the ground for detailed discussions during the MRC meeting.

The data was gathered from multiple business units from across all branches, pasted into a big Word document by head-office market risk analyst 'as is' and distributed to the MRC members almost in the last minute prior to the meeting. The document was about 30 pages long, lacked consistent formatting across related information items and, as a result, was almost unreadable within the remaining timeframe. Because of that, MRC meetings were usually long and less productive.

 

CHANGES IMPLEMENTED

d2e provided assistance in the total revamp of the MRC package. The first step was to engage the reporting business units (both locally and overseas) to produce monthly reports in a standardised manner. To achieve this goal specific Excel templates were created. These had built in macros that automatically collected most of the data from the internal business units' files and databases.

The data was then compiled into a consistently formatted in PDF document. All relevant performance data, related historical charts and trader commentaries were supplemented by several additional pages with charts imported from Reuters software. The resulting document also had a cover page, table of contents and page numbers. The picture below shows some sample pages of the new MRC package.

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BENEFITS DELIVERED

The MRC packages were distributed to all the stakeholders a few days before meetings. All hot spots of the report were highlighted in a supporting paper. This enabled the MRC members to preview the document well before the meeting and make decisions to request any additional documents or invite trading managers to the meeting.

The MRC packages in PDF were easy to navigate on the screen and looked the same on the print out. The latter was very helpful during MRC discussions because any topic of the document could be referred to by its page number. (The old MRC documents created in Microsoft Word not only lacked the page numbers but also looked differently in their printed form due to the individual Word and printers settings).

When the company was the subject of an acquisition the latest MRC report was chosen as the main strategic document covering the market risk area for a due diligence process.