What is Foreign Exchange Risk Management (FX Hedging)?
Risk management or FX hedging may be a useful tool for businesses that wish to manage foreign exchange rate risk.
There are many ways to manage currency risk that don’t need to be complex or difficult. Rather, they provide an opportunity to help protect the company’s margins and reduce the risk of currency fluctuations affecting the firm’s financial position.
This risk guide is designed to help businesses understand how easy it is to manage currency risks using a few simple tools.
Businesses looking to manage their foreign exchange risk may use this guide to understand their business requirements, review FX hedging products and understand how they may be used as part of a risk management strategy.
Do you have regular payments to suppliers in foriegn currencies?
Does your internnational supplier provide you with payment terms (for example, 30, 60 or 90 days from issue date)?