Financial Risk Management

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Redesign of the enterprise risk management

IFBC was mandated to redesign Zehnder’s enterprise risk management. As part of the project, the key risk management processes were revised and documented in a risk manual on group level. Furthermore, an Excel-based tool was created in which risks can be assessed and visualized.

Zehnder is a leading manufacturer of indoor climate solutions in Switzerland.

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Review of a tool for analyzing corporate clients and the determination of debt capacity

IFBC was mandated by Luzerner Kantonalbank to assess from an external perspective the further development of the bank’s internal tool to analyze corporate clients within the credit application process. A specific focus was on the assessment of the methodology for determining debt capacity, considering current best practice. The results of the review were summarized in a final report including recommendations for action.

Luzerner Kantonalbank employs around1’250 people and is one of the largest Swiss cantonal banks. The bank has been a public limited company under private law and is listed on the SIX Swiss Exchange since 2001.

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Design and implementation of training courses in corporate banking

IFBC supported Graubündner Kantonalbank in the design and implementation of training courses for the further development of business model and debt capacity analysis in corporate banking.

As a universal bank, Graubündner Kantonalbank is represented at over 40 locations in the canton of Graubünden and employs around 1’000 people. GKB’s participation certificate has been listed on the stock exchange since 1985.

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Conception and implementation of training courses in corporate banking

IFBC supported Schwyzer Kantonalbank in the redesign of the business model and debt-capacity analysis in corporate banking. As part of the introduction of the new approach, IFBC developed an initial training including various case studies and was responsible for conducting the training. In addition, IFBC supported Schwyzer Kantonalbank in the development of a theory manual and other supporting tools.

Schwyzer Kantonalbank, headquartered in Schwyz, is the leading bank in the canton and as a locally anchored universal bank focuses on serving retail clients as well as small and medium-sized enterprises.

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Support in the development of a new bank strategy

IFBC supported Bank Avera in developing the bank strategy for the coming 5-year period. Based on a detailed SWOT analysis and the defined vision und mission, the strategic positioning of the bank and the relevant business areas was formulated together with the Executive Board and with the involvement of the Board of Directors. Both qualitative and quantitative targets were then derived and specific strategic initiatives were developed to implement the strategy.

Bank Avera, headquartered in Wetzikon, is a regionally oriented universal bank and operates in retail, corporate and private banking. With 12 branches in the canton of Zurich and more than 45,000 customers, it is the largest regional bank in the canton of Zurich.

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Review of risk-adjusted pricing and performance management in corporate banking

IFBC was mandated by Graubündner Kantonalbank to review the individual components of the risk-adjusted pricing in the corporate banking division in comparison to best practice. In addition, an assessment of the current design of the performance management and the instruments used in the corporate banking division was part of the assignment. Based on workshops with GKB and further analyses, IFBC summarized the key findings of the review for the attention of the executive board and derived recommendations for further development in the areas under review.

As a universal bank, Graubündner Kantonalbank is represented at 49 locations in the canton of Graubünden and employs 1’015 people. GKB’s participation certificate has been listed on the stock exchange since 1985.

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Development of concept for business model and debt capacity analysis

IFBC was mandated to develop a new concept to capture and analyse the business model as well as the debt capacity of the bank’s corporate clients according to best practice.

Schwyzer Kantonalbank, headquartered in Schwyz, is the cantonal bank of the canton of Schwyz. The locally anchored universal bank focuses its business activities on serving retail clients as well as small and medium-sized enterprises.

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Development of a FX hedging strategy as the basis for a FX policy

IFBC was mandated to develop a FX hedging strategy as well as a FX policy based on a fundamental analysis of direct and indirect FX exposures and the company’s risk-bearing capacity.

Energiedienst is a German-Swiss energy supplier. In addition to the electricity production from hydropower, the company distributes climate-neutral gas and offers various services in the fields of photovoltaics, heat pumps and e-mobility to its clients.

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Assessment and redesign of the FX hedging strategy and the development of a FX policy

IFBC was mandated by Ferrum to assess and redesign the FX hedging strategy and to develop a FX policy. Based on the determination and analysis of direct and indirect FX exposures further considering risk appetite as well as the risk bearing capacity of Ferrum, recommendations for the future management of FX risks were developed and set out in an FX policy individually tailored to the company.

Ferrum Group is a globally operating Swiss industrial company. In the field of canning technology, the company produces customized sealing machines for the the food and beverage industry. Furthermore, Ferrum also produces high-performance centrifuges for customers in the chemical and pharmaceutical sectors.

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Review of currency risk management

IFBC was engaged by the VAT Group to review the current structure of currency risk management in line with best practice. The focus of the review was on the determination and analysis of the cashflow-based FX exposures, the identification of measures to reduce FX exposures in the balance sheet affecting the income statement as well as the assessment of the established hedging process.

The VAT Group is a global leader in the development and manufacturing of vacuum valves, multi-valve modules and metal bellows. The Group is listed on the SIX Swiss Exchange since April 2016.

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Review of lending approaches in corporate banking

IFBC developed a new approach for Aargauische Kantonalbank to capture a value-chain-oriented business model, which enables a direct transition to the calculation of the debt capacity. Additionally, IFBC established a new debt capacity method according to best practice and conducted training sessions for the application of the new approaches.

Aargauische Kantonalbank, headquartered in Aarau, is the cantonal bank of the canton of Aargau. Founded in 1913, Aargauische Kantonalbank offers a wide range of financial services in its domestic market Aargau with focus on private, corporate and institutional clients.

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Assessment and restructuring of a currency risk management system

IFBC was mandated to assess and develop a new concept for Rieter’s FX management. The focus was on expected future cash flows from machinery transactions. In addition, IFBC supported Rieter in the introduction of the hedge accounting standard IFRS 9.

Rieter is the world’s leading supplier of systems for short staple fiber spinning. The Winterthur-based company develops and manufactures machines, systems and components for processing natural and synthetic fibres and their blends into yarns.