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Financial
Solutions and Risk Management
Risk management has
traditionally been associated with financial risk. This risk
is the most easily to package and manage via capital
markets. However, many projects need to first mitigate
certain business risks in order to reach investment grade.
IKU develops a financial
solutions in cooperation with
financial
experts and a
research institute in central and retail banking. The
solutions are designed to supports and be fully integrated
with the business strategy of the company. The
solution thus follows the investment strategy decided
by the company board.
Taking this strategic approach
to finance, projects that initially may not have investment
grade, may be financed through the sharing of risk - and
profits - over a larger set of actors. Creating such more
efficient mechanisms to absorb business risk, enables
investors with different risk appetite to be invited. A
wider whole spectrum of financial institutions and capital
markets and derivative instrument can be used to finance
exceptionally risky and rewarding projects.
One field of special interest to
these kind of solutions are large infrastructure
investments. Private-public-partnerships another.
IKU helps its clients to identify the commercial risks and package them so they can be managed via economic markets,
in this case through the patent instrument.