We make owners and management visualize

the potential with our approach

STRATEGY

Governance – defines well run companies

Governance system

STRATEGY Copyright © 2017 Beide Forvaltning A/S

Risk Charter

Identification

Management

Philosophy

Montiroing

Good governance or control systems consist of an

infrastructure with core components and prioritized

processes tailored to your organization and stakeholders.

ResponsibilitiesClear identification of responsibilities for the

overall governance of market, credit and

operational risk.

MandatesDefinition of prevalent qualitative and

quantitative guidelines fit for the risk appetite of

the organization and stakeholder expectations.

Policies and delegationDefinition of identification, monitoring and

management processes and controls to be

implemented accross the organization.

RISK CHARTER

Governance system

STRATEGY Copyright © 2017 Beide Forvaltning A/S

Risk Charter

Identification

Managemen

t

Philosophy

Montiroing

PHILOSOPHY of Market, Credit and Operational risk .

Index management (beta)Approach whereas financial solidity allows

the organization to adopt strategies

designed to be compared or/and beat the

overall floating market given tracking risk.

Philosophy

Regulated by equity expectationsApproach whereas guidance given to

stakeholders drives how the overall risk

philosophy is governed, monitored and

managed.

The ability to guide earnings and communicate

qualitatve governance systems to stakeholders

are setting expections for in what context risk

should be defined. Alignment between what is

communicated (assumed) and what is delivered

then becomes the basis for how to build an

effective risk philosophy and governance system.

Active management (alpha)Approach whereas financial solidity dictate

an approach where strategies will need to

be monitored for its relative impact to

financial statements and stakeholder

expectations.

Governance system

STRATEGY Copyright © 2017 Beide Forvaltning A/S

Risk Charter

Identification

Managemen

t

Philosophy

Montiroing

IDENTIFICATION of Market, Credit and Operational risk .

Holdings and Asset codesStuctured cash flow mapping of physical

assets, liabilities, contracts and derivatives by

linear and non-linear characteristics sorted

by assets codes denoting underlying risk

exposure (Fixed income, equity, commodity)

by currency.

Identification

Prevalent quantificational toolsThe use of prevalent methods in compliance

with recognized accounting principles and risk

metrics guidance to communicate risk metrics.

The use of several methodologies are

recommended to enhance portrayal of

underlying position exposure.

VaR, stress tests and shocks utilizing various

stochastic (volume) representations should

accomodate how each business unit is viewed

and how business units are aggregated in

total.

ProcessesClear outline of what procedures are in place

and have been prioritized to ensure

prevalency and quality of information

contained and defined in cash flow maps.

Governance system

STRATEGY Copyright © 2017 Beide Forvaltning A/S

Risk Charter

Identification

Managemen

t

Philosophy

Montiroing

MONITORING of Market, Credit and Operational risk .

Polices in placeClear outline of what should be monitored

qualitativly and quantitatively and for what

purpose as it pertains to balance sheet,

income statement, cash flow, credit and

operational risk to meet stakeholder

expectations for governane.

Monitoring

Prevalent quantificational tools and metricsIdentification of what systems and infrastructure

that is in place to support overall market, credit

and operational risk monitoring.

Effective monitoring systems require that

organizations invest adequate resources and

strategic focus to align monitoring capability with

that of polices and procedures to ensure that

what is in place support what has been

communicated.

Processes in placeOutline and infrastructure support for what

processes are in place to support

monitoring routines, how it is documented

and made available for training and

compliance efforts.

Governance system

STRATEGY Copyright © 2017 Beide Forvaltning A/S

Risk Charter

Identification

Managemen

t

Philosophy

Montiroing

MANAGEMENT of Market, Credit and Operational risk .

Fair Value / Cash flow hedges Structured cash flow mapping of hedging

items (transactions, derivative structures)

to evaluate how best to ensure dollar

offsett to a given fixed – floating priced

asset, liability holding.

Management

Hedging program design (MLP, Yieldco, Internal criteria, regulatory criteria)

Design og fair value, cash flow, and left/right tail

distribution hedging programs to meet residual

risk requirements.

By defining the overall purpose of hedging

programs, liquidity to be utilized to support

program, overall cost and financial criteria to be

met such as specific residul risk metrics, delta,

gamma etc – we will assist the organiztion in

determining what transactional structures will best

meet the overall hedging criteria and purpose.

Hedging effectiveness (GAAP / IFRS)Statistical portrayal of hedging instruments

and hedging item to determine their

offsetting characteristics through dollar

offsett, minimum variance and regression

methodologies – prospectively and

retrospectivly.

Products & Prices – Governance

TCopyright © 2017 Beide Forvaltning A/S

Product Description Prices

ASSESSMENT

2 week assessment (interviews, studies, questions) to

determine overall fit of infrastructure and processes to

give recommendation recommended governance

enhancements.

15,000 USD for up to 80 hours of analysis

to develop executive summary, 10 slide

presentation and detailed report. 175 USD

for each hour thereafter.

IDENTIFICATION

Cashflow mappiing utilizing prevalent risk-metrics

methods to identify expeted linear and non-linear

cashflows from assets, liabilities, contracts, structured

transactions and derivatives.

175 USD per hour to develop cashflow

maps and documentation behind each

modelled cashflow.

MONITORING

Executive dash board identification and development

based on current risk charter, policies and guidance

expectations from stakeholder to embed risk metrics in

financial reporting.

175 USD per hour to develop monitoring

reporting in close cooperaion with

stakeholders.

MANAGEMENT

Fair value/cash flow/distribution hedging design (MLPs,

FAS/IFRS compliant) through formulas and/or

derivatives structures to match risk embedded in

assets/liabilities or to contruct left or right distribution

outcomes

175 USD per hour to develop suggested

transaction structures based on outcome

criteria specifications (residual risk (VaR,

stress), deta and gamma levels)

STRATEGY