At Noah's Rule we are passionate advocates of corporate risk management through active risk awareness. Our specialty is understanding the products and possibilities available for sensibly managing market risks, helping our clients develop greater acuity to their market risks and improving their ability to harness those risks to improve delivery on their long term strategic goals.
We are not advocates of hedging or risk management for the sake of it. Nor are we enamoured with the increasingly strong positioning in some quarters that it is not management's role to "speculate" in markets; that shareholders seek market exposure through their investment and management's job is to stay out of the way. It is our firm belief that there are risks that businesses can and should run and those that simply don't justify the potential harm. There are also times when some risks are justified and times where they are not.
The age old problem is that the markets will go where they are going, with or without us. This inevitably is summed up by the adage "The markets always go where you expect them to go, they just never go there when you expect it!" Against this background we would argue management's challenge is to maximise the return on the assets under their control while the markets make their journey. If they are going your way all the better, if not, the greater time you have to adjust the more likely you are to survive and evolve.
We believe good risk management is not about predicting the markets journey or anticipating economic cycles. Instead it is about developing a sound understanding of what can be achieved right now; what might be achieved in the future, and harnessing that knowledge to improve the likelihood of success in any and all likely market circumstances.
Since starting Noah's Rule we have been delighted to find so many management teams and Board's that share our view and seek a better way than simply going with the markets flow. While we have worked extensively with mining companies we have also worked with agri-energy businesses, fast moving consumer goods companies with commodity and currency exposures, importers and exporters.
If you have market risks you would like to manage, or you simply want to explore the range of risk management possibilities available to you, and you want independent advice that draws equally on sound technical understanding, real world experience and a healthy dose of common sense we would love to help you build strategy.