The projects summarized below are representative of the work that Acclaim Strategies’ professionals and associates have successfully completed. These projects include work conducted both by Acclaim Strategies and prior consulting organizations in which our associates have served. Client references are available upon request.
Capital investment strategy and process optimization
Helped the client design and produce advanced analytic tools and processes, enabling the company to more quickly and more rigorously study the cost and risk of alternative capital investment plans. The models addressed multiple forms of uncertainty including customer sales, interest rates, bond spreads, and energy commodity prices.
Enterprise risk management strategy
Consumer-owned financial institution (GSE)
Assessed the client’s enterprise risk management practices and helped them develop a comprehensive plan for process enhancement. Project involved extensive interactions with executive management, including highly-successful board presentations.
Asset management strategy
Joint Action Agency
Designed and facilitated an executive-level workshop for the client, with particular focus on capital investment planning and asset management. Workshop addressed capital allocation fundamentals, portfolio optimization via efficient frontier concepts, and application of enterprise risk management to capital investment decisions.
Middle office review and assessment of hedging performance metrics
U.S. federal agency
Performed a comprehensive review of client’s processes and methods for maintaining their transaction portfolio and producing various risk metrics. The review included, but was not limited to forecasting, volatility and correlation representations, position aggregation, risk computation approach, and risk reporting. Subsequent to this engagement, reviewed draft client methodologies connected with prospective and after-the-fact hedge performance assessment from both a strategy and accounting standpoint. Proposed enhanced methods based on leading practices which were a better fit for client’s business model and existing technical capabilities. The project concluded with communication of draft implementation plans for the newly-designed metrics.
Risk policy review, trading company performance assessment, and organizational planning
Canadian Crown Corporation
Conducted a review and gap analysis of client’s then-existing risk management policies of both the parent company and the trading unit. Successfully communicated findings and recommendations to board of directors, enhancing confidence in the organization and facilitating progress in strategy implementation which has since been highly successful. Performed follow-up review of trading unit performance and assisted the client in developing risk adjusted return on capital (RAROC) based performance metrics. As part of project, reviewed and provided improvement recommendations connected with service fees charged to parent company, valuation of energy management activities, growth strategies, and proposed changes to the governance and risk oversight structure necessary to support accelerated growth.
Energy risk management program development
Canadian Crown Corporation
Successfully assisted client in defining, designing, and initiating the implementation of a full-scale middle-office function. Client had made prior unsuccessful attempts to receive internal approval for hedging activities. Delivered executive and staff-level education workshops, assisted in program design and phase-in plans to properly mesh with corporate strategy and key objectives, provided consulting on systems and internally-developed risk analytics, and provided extensive advisory services connected with risk policy development and approval of new transaction types.
Energy hedging benchmarking study
Investor-owned electric utility
Performed formal benchmarking study of client’s energy hedging program (principally natural gas). Conducted extensive interviews and document reviews to understand client’s program and to construct formal survey instrument. Recruited industry participants, administered surveys, collected and analyzed responses, and prepared detailed report. Report was successfully delivered to state regulators.
Enterprise risk management program development
State utility district
Worked as extension of client’s staff to help explore leading enterprise risk management (ERM) models, including the COSO ERM Framework and the AS/NZ Standard. Assisted client in designing a customized ERM program tailored to their existing governance and business processes while also satisfying all key elements of leading practices. Assisted client in preparing executive-level program information for presentation to rating agencies and other financial institutions.
Risk management program rebuild
Retail energy merchant
Was retained by client after a series of risk management mishaps and a fraud incident. Performed a comprehensive review of existing business strategy and risk management policies/procedures. Recommended and provided extensive assistance in a program-rebuild, including revised policy, procedure development assistance, information technology selection support, and interim risk analysis and reporting outsourcing while the new systems were implemented. Engagement was highly successful, helping to strengthen internal controls, bolster investor and board confidence, restructure debt, and ultimately position the company for profitable sale to a nearby regional holding company.