Identifying FX Exposures: A Critical Step in Developing an FX Risk Strategy

Identifying FX Exposures: A Critical Step in Developing an FX Risk Strategy

In an earlier article, we helped you build a foundation for your FX risk management strategy with a “brick and mortar” analogy… the process of collecting exposure data and executing hedges we described as “bricks,” and risk measurement and analysis using VAR and confidence intervals were described as “mortar.” This article will discuss a crucial step in your foundation-building process: gathering accurateFX exposure data.

How to Convince your CXO to Hedge Forex

How to Convince your CXO to Hedge Forex

Sir Arthur Conan Doyle said (via Sherlock Holmes), “When you eliminate the impossible, whatever remains, no matter how improbable, must be the truth.” An unexplained, or otherwise anticipated “no” to the question of hedging FX is like a mystery. The way to decipher why executives won’t hedge, and convince them to act, is to remove the possible arguments against hedging, one by one.

Why Not to Not Hedge Your FX Risk

Why Not to Not Hedge Your FX Risk

If only executives spoke as parents do to their children: Mom, can I…? No. Why not? Because you did not eat your vegetables. Or, the infamous, because I said no. At least you’d know there is or isn’t a chance to change their view and what action is required…

FX Budget Rates: Confident Becomes You

FX Budget Rates: Confident Becomes You

Treasurers and risk managers who’ve been around the block recognize that fluctuating market rates rapidly affect their ability to capture that rate.

This article focuses on how you can set budget rates and align your FX strategy to increase confidence that your company will convert its forecast exposures at the budgeted conversion rate.

A Dose of Reality: Rethinking FX Budget Rates

A Dose of Reality: Rethinking FX Budget Rates

We all daydream of winning the Publishers Clearing House Sweepstakes. A cushion of $25,000 per month would go a long way to pay bills, save money for rainy days, and build a retirement nest egg. Alas, the probability of such a stroke of luck is miniscule. 

Put Confidence in Your FX Strategy

Put Confidence in Your FX Strategy

Remember the story of the three little pigs? If you’ve ever leaned against a brick wall, you know the unsung hero of the story was mortar – the cement that connects every brick so the wall stays intact, and serves its purpose.

Our title, Put Confidence in Your FX Strategy, asserts that the way to build a strategy is to include confidence among the materials used, like the mortar in a brick house.

Measuring FX Risk: Crises with Confidence

Measuring FX Risk: Crises with Confidence

Corporate treasurers do more than ever before to identify and mitigate risk and to position their companies to weather market crises with confidence. According to Deloitte, 85% of companies are measuring their sensitivity to market risk, but a much smaller portion regularly assess the probability of their risk.

How to Use Probability to Manage FX Risk

How to Use Probability to Manage FX Risk

In our last article, we identified a clear risk management objective: certainty. Risk management is really about understanding and managing uncertainty to create more certainty.

They say, “what gets measured gets managed.” So, if you’re not measuring your FX risk, you might not be managing it – even if you think you are.

FX Risk Management Objectives

FX Risk Management Objectives

This article kicks off a new series of posts that will help treasury professionals understand conventional FX risk management practices and how they fit into a successful strategy.

There’s no better way to begin than to ask ourselves, “why do companies bother to use any of these conventional practices?”

Book Review: Moneyland

Book Review: Moneyland

Oliver Bullough dissects how global mega wealth and corruption really work, and offers a possible if unlikely solution

"Moneyland" pulls back the curtain on the shady, secretive underworld of the world's mega-wealthy, in which they move vast sums of money around with the intention of keeping it away from tax authorities, and knowledge of it away from tax payers.

The Top Nine Finance Experts to Follow on LinkedIn

The Top Nine Finance Experts to Follow on LinkedIn

For corporate finance professionals, who have no shortage of expert resources to read, view and engage with on LinkedIn, it's difficult to narrow the list down to a handful of "must follow" influencers.

To pitch in, we've built a list of business and finance experts to regularly follow on LinkedIn. It's a short list, but it does include some of the most brilliant financial minds in the business.

Predictions of a Global Recession Are Rising: Here's What Businesses Need to Know

Predictions of a Global Recession Are Rising: Here's What Businesses Need to Know

A negative economic outlook portends possible business risks.

Just a year on from economists' almost unanimous agreement that the global economy was in robust shape, the outlook in 2019 has essentially shifted 180 degrees to that of pessimism.

OANDA Partners with AdvantageGo to Help Insurance Companies Mitigate Policy Risk

OANDA Partners with AdvantageGo to Help Insurance Companies Mitigate Policy Risk

OANDA has partnered with commercial insurance software provider AdvantageGo to provide real-time foreign exchange rate data through their Microservices architecture, helping insurers and reinsurers assess policy risk more accurately and efficiently.

Under the partnership, AdvantageGo’s Currency Services will be powered by OANDA’s Exchange Rates API.