Commodity and trade collateral management specialist Drum Risk is launching DRUM Advisory to fill the gap in the market for specialised borrowing base audits.
Following the commodity trade frauds of 2020 every bank requires greater checks & balances. The DRUM Advisory team have the advantage of drawing on 25 years of physical management, financial reporting and contingency planning experience from within the group, to allow the team to undertake this increased level of borrowing base audit.
“Given the increased number of problems the trade & commodity markets have encountered over the past 18 months, banks and other lenders are crying out for much more stringent and comprehensive support across the board to protect their financing, investments and reputational risk profiles,” says a company spokesperson.
The DRUM Advisory & Drum Risk teams have over the past two years been working closely with a selection of banks to develop a new and extensive borrowing base audit scope. This ensures that Drum not only audit, test and confirm the critical areas within a borrowing base facility and the subsequent borrowing base reports, but look far further into operational & inventory management, recovery, collateral value, financial default & liquidation planning. The potential scope is extensive and will be adjusted to each bank’s internal requirements.
DRUM Advisory also announced that they have recently partnered on a project-by-project basis with Hilco Valuation Services Europe, a highly respected global appraisal company specialising in inventory and accounts receivable field examinations; machinery & equipment, inventory, real estate and intangible asset appraisals and liquidations.
Drum Risk was originally established in 1997 to comprehensively manage and control goods within the collateral management market. Simultaneously the company established specialised business units focused on KYC, investigations, audits & financial analysis, feasibility studies, market analysis & due diligence.