Insight to All Things Currency and Treasury Management

One of the top 5 Treasury & Risk articles in 2017, FiREapps “Taking a Lean Approach to Cash Flow Exposure Forecasting” outlines how the guiding principles of lean can help treasury better manage currency risk.

Read by thousands of treasury and financial professionals, three specific areas of the exposure forecasting process are outlined as lending themselves to a lean approach:

1.    A Clear Workflow


Most treasury functions have invested in technology to facilitate trade recommendations, but generally, the processes leading up to it are manual and done in spreadsheets. A manual and disjointed workflow can lead to a lack of confidence in the data and make it difficult to implement a consistent hedging strategy.

2.    Forecast Capture & Consolidation


It can be difficult to keep track of hundreds of spreadsheets, fix formatting issues, standardize categories, and assemble one master forecast. Manual data collection and compilation are time-consuming and generally prone to process errors and the risk associated with those errors.

3.    Cash Flow Exposure Analysis


Without a particular format or structure to aggregate data, a lot of time is wasted trying to force data submissions into a usable format and makes it difficult to trap quality issues at the source.


To learn how you can apply lean principles to streamline and improve your workflow, forecast capture and consolidation, and cash flow exposure analysis, read “Taking a Lean Approach to Cash Flow Exposure Forecasting” in Treasury & Risk.