Interested in Foreign Exchange Risk?
Get in touch with Sander van Tol or Lisette Overmars for more information about Foreign Exchange Risk.
Foreign Exchange (FX) risk management is driven by the corporates FX objectives, policy and strategy and is enabled by the implementation of a good FX risk management process.
In order to implement a good FX risk management process companies can apply the Zanders corporate risk management framework starting with identification of different kind of FX exposures, as follows :
The FX objectives are defined to facilitate proper management of the impact of FX movements on the corporate business. Expected cash flows can deviate significantly when calculated according to the functional currency of the company over time due to FX volatility. The company’s decision on the level of acceptable risk needs to be embedded in the FX objectives. Leading objectives for corporates to manage their FX exposures:
The opening of business opportunities in emerging markets and their increasing relative importance for corporates in Europe and the US put extra pressure on managing foreign exchange (FX) risks. Es...
According to Intrum Justitia, bad debts of more than € 350 billion were written off in Europe in 2013, which is around three percent of all outstanding transactions. Internal research into Dut...
Integration between treasury and the wider business is a prerequisite for an effective and efficient treasury organization. The remit of the treasury function has changed in recent years so that tr...
"I've heard a lot about making sure treasury is a strategic partner to the business. Can you clarify what steps treasurers can take to achieve this and what are the benefits?"
At the end of 2013 the Renminbi - or People’s Currency - entered the world’s top ten most-used currencies for payments in terms of value. Being part of daily business for companies trad...
The European equivalent of the Dodd-Frank act is EMIR: the ‘European Market Infrastructure Regulation’, which was enforced on the 16th of August 2012. Its objective is to reduce the sys...
When drawing up an effective FX risk policy to mitigate the transactional currency risks of a company, the definition of the objectives as well as the hedge horizon and hedge ratios are important e...
Export companies are by definition focused on international markets. Despite the promise of increased revenues, exports inherently increase the exposure to currency and other financial markets. Rec...
Risk management is evolving and adapting to the external factors that provide strong incentives to develop new risk management techniques. Whether this is because the world has become riskier or ...
Throughout 2009, volatility in the foreign exchange markets was a key theme. Although the financial markets calmed a little, corporate treasurers still face an environment in which their risk manag...
More than 400 years after the Dutch East India Company was set up, Acomo, a group of seven trading companies, deals in products which are reminiscent of the golden age of the Republic of the Seven ...
Bertold Walther: “Liam and Sebastian had a very fast understanding of our problem. Within a few sessions, we have been able to set up a hedging policy. Which was the goal of our collaborati...
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