When left unaddressed, foreign currency risk can wreak havoc on your bottom line. But it doesn’t have to be this way. To keep foreign currency fluctuations under control and drive predictability in financial statements, many companies turn to FX hedge programs.
Treasurers are tasked with protecting the gain/loss line as well as foreign revenue, expenses and/or margins. So, it’s not unusual for Treasury departments to want to implement a foreign currency hedge program.
Ever thought about how you should “convert” certain cash flows or, when you’re hedged, how that might impact the cash flow forecast? Cash flow forecasting is as much an art as it is a science, but there are some tangible hidden factors that you may not be contemplating in your current cash flow forecasting process. […]