FX Risk Management

What is your Risk?

Step 1
Identify Type of Risk to Hedge
  • Transactional Risk
  • Translational Risk
  • Economic Risk
Step 2
Identify What Needs to be Hedged
  • What currency pair e.g., EUR/GBP
  • What Amount is at risk
  • What Duration the risk is exposed
  • Do you have a budget rate?
Step 3
Identify What Tools You can use to Hedge
  • Spot Transaction
  • Forward Contracts
  • Options Contracts