Currency risk: How to take volatility into account in your management?
Volatility represents the change in the value of a currency and is of interest to us to the extent that it affects the company’s international operations.
Build your tool to compare the performance of different markets during budget planning
In the second article on volatility [1], we discussed how to compare different international transactions on an equivalent basis to account for the impact differential on profitability generated by currencies.
Is a coverage ratio of 70% too much or insufficient?
Your company’s currency risk management approach begins with verbalizing your attitude toward risk. Here are 2 questions to start your reflection with…
Risk Management Policy
Risk can be seen has the probability of an event happening that will have an impact (+ or -) on your business objectives.
5 simple ideas to improve your foreign exchange risk management
Economies around the world continue to be affected by events in Ukraine and the sanctions imposed on Russia.
Are you confident that your existing currency risk management strategy will be successful if reality differs from your expectations?
Comparing indicators such as profitability due to currency movements, based on 4 simulated situations, can ensure that the strategy in place will continue to be effective.
Currency market : Basic information on the functioning of the market
Basic notions to help the importer or exporter working internationally, to better transact on the foreign exchange market.
Second wave of COVID, political uncertainty, markets volatility, foreign exchange risk
With the second wave of COVID-19 raging, confinement measures resuming and uncertainty around the global economic recovery.
From forward contracts to options: Presenting instruments mitigating foreign exchange risk
In a previous article (Foreign currency risk), we addressed identifying and measuring foreign exchange risk so it can be managed in such a way that the company remains focused on its core mission, its business operations, without being overly exposed to financial risks.
