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Insight to All Things Currency and Treasury Management

According to the Wells Fargo Foreign Exchange 2018 Risk Management Practices Survey, the accuracy and timeliness of data has become one of the biggest FX risk management challenges for corporations.

And, as the U.S. dollar continues to strengthen and signs of currency volatility increase, it is imperative that finance teams have the tools they need to quickly answer currency-related questions.

 

Greatest FX Risk Management Challenges to Public and Private Companies: 2018

Source: Wells Fargo Foreign Exchange 2018 Risk Management Practices Survey

As can be inferred from the Wells Fargo Foreign Exchange Risk survey, although 47 percent of public companies named accuracy and timeliness of data as their greatest challenge when looking to manage FX risk, more than half of the companies responding already have access to accurate and timely FX data, giving them the ability to better manage risk and reduce costs at the same time.

If you are struggling like the other companies that do not have access to complete and timely data, it is time to leverage a best practices approach for defining currency exposure. By implementing an Enterprise Currency Management (ECM) solution, those companies have gifted themselves with a complete view of their global- and entity-level exposures, enabling better decision making, more accurate hedge ratios and successful FX risk mitigation.

Companies with successful currency management programs powered by accurate, complete and timely data often see significant benefits including:

  • The elimination of FX surprises
  • Reduced EPS at risk to less than $0.01
  • Decreased program and hedging costs

This goes to show that when there is confidence in the integrity of data, it is not only easy to manage exposures and mitigate risk, but it also fosters time and cost savings for the treasury and finance teams.

 

How to Gain Access to the Data You Need

Having access to accurate, complete and timely data enables finance and treasury teams to make better decisions.

Confidence in exposure data not only allows for better risk mitigation decision, but also opens up organic exposure elimination opportunities.

The leading provider of cloud-based Enterprise Currency Management (ECM) solutions for currency exposure management and enterprise currency analytics, FiREapps is known industry-wide as the data experts.

FiREapps is the only cloud-based ECM solution with the ability to facilitate direct data extraction from ERP systems and has the only SAP- and Oracle-certified toolkits in the industry.

With the ability to extract data from multiple ERPs and collect data from other source systems, FiREapps ensuring users have access to the most accurate, complete and timely data available.

The Bottom Line

In 2017, North American and European multinationals reported at least $27.2 billion in negative FX impacts. Those losses are a reflection of companies that lack the data they need to best mitigate FX risk.

If you are a part of the 47 percent that finds their greatest FX challenge is access to accurate and timely data or if you don’t have full confidence in the data you do have, FiREapps is the answer to your problems.

 

Contact FiREapps today to learn how you too can have access to the accurate, complete and timely data you need.