A hedge program is most effective when it aligns with the way your company evaluates financial performance. In this blog, we provide an overview of three different hedge strategy types that companies often turn to.
Is your balance sheet hedge program doing its job? Sometimes, balance sheet hedging has hidden weaknesses and nuances that, when not periodically reviewed, can cause even more risk. Here are five questions you can ask to ensure your program is running well.
Today, I’m going to be talking about objective setting. And when we’re talking about FX policies, a lot of times – almost universally, I guess – I see the objective in the policies to mitigate FX risk, and it’s not really clear what it is we’re communicating to the board of directors who is the […]
As companies implement and run foreign currency (FX) risk management programs, they need to be aware of some common mistakes. Not all treasuries will encounter every mistake, but they are sure to encounter at least one of these—if not now, then in the not-too-distant future.
Once a company establishes a balance sheet program, it likely runs on auto-pilot from then on. Exposures are gathered, forecasted, netted, hedged and adjusted inter-month, and the results of the program are reported — but rarely is there a “review” of the hedge program from top to bottom.