- "Doing nothing" about financial risks (eg interest rate and/or exchange rate risks) IS in fact doing something.
- "Doing nothing" is tantamount to putting a company into another line of business by default, viz the business of speculating on interest rates and/or exchange rates.
- FUD (Fear, Uncertainty and Doubt) often drives corporate decision-making in the face of financial risks.
- An important first step in dispelling FUD is to have an appropriate financial risk management policy in place. This policy should, inter alia, articulate a system of limits and controls on the people who deal in a corporate name in order that the corporation is well placed to avoid disastrous "dealing room losses".
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- The business of speculating on interest rates and/or exchange rates is a very risky one, and it is precisely the business that bankers (the financial markets "professionals") do not wish to be in - unless, of course, their dealing operation is always subject to strictly observed limits, controls and authorities.
- Bankers are very risk averse, and they understand the techniques to use to manage financial risks.
- Oakbridge can show how to obtain certainty in an uncertain world by demonstrating the techniques bankers themselves use - but which they may never have carefully explained to their clients (if in fact they have explained anything at all)!
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- It is possible to obtain CERTAIN interest rates and exchange rates for delivery at a future date. Under the appropriate financial markets circumstances, Oakbridge can show how to obtain certain exchange rates in the future, where those exchange rates will be BETTER than today's spot rate. In other words, a company can be shown how to obtain future certainty with a BENEFIT.
- Perhaps counter-intuitively, obtaining certain future interest rates and/or exchange rates need not cost!
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