Fortune 500 Non-Financial Corporation

The Situation

An international consumer products company sought an analysis of financial and hazard risks covering all operating subsidiaries and rolled up to corporate treasury.

NERA's Role

NERA teamed with sister company Marsh Inc. to provide the combined analysis. NERA modeled commodity and currency prices for two major food operating companies and developed risk distributions using Monte Carlo simulation. The analysis was performed at commodity, currency, country and operating levels, then rolled up to treasury and combined with hazard risk. NERA and Marsh also recommended improvements in existing risk management policies.

The Result

The corporation moved to integrate enterprise risk analysis into budgeting and financial planning, and began to explore innovative risk management solutions in insurance and capital markets.