Insight to All Things Currency and Treasury Management

Automating Corporate FX: Six Success Stories, the latest whitepaper from FiREapps, details an array of efficiencies multinationals experienced after transitioning away from manual, spreadsheet-based risk management programs.

The paper offers an overview of the steps six leading companies took to automate their FX programs and the role FiREapps played in designing and implementing each customized workflow.

As the white paper demonstrates, despite the size and complexity of the corporations, each realized greater efficiencies in its FX program – and reduced overall FX-related risks often within months of transitioning to an optimized program.

For instance, one company profiled in the paper was able to process 50 percent more currency pairs in its new automated environment than it could using a manual program. This saved the company $1 million annually. In another profile, a $15 billion international consumer goods company saved more than $1 million in trading fees using its newly automated FX program. In a third scenario, a $5 billion specialty chemical manufacturer, realized $5 million in annual savings because its newly-automated process and eliminated 600 hours of labor previously devoted to manual calculations.


These are just a handful of the quantifiable results that are documented in Automating Corporate FX: Six Success Stories.

Each of these have distinctly different challenges and operate at various levels of sophistication, but all share a common trait: the need to automate their FX programs.

Collectively, the studies demonstrate that – regardless of the sophistication or complexity of an organization – every corporation can benefit from automated currency risk management. This is true even for companies already utilizing treasury management systems (TMS) and/or FX trading platforms.

In fact, as readers will see, TMS and FX trading platforms do not serve as substitutes for fully-automated currency management programs, but automation can enhance the value of a TMS, FX trading platform and ERP(s).

Nearly every company doing business beyond its own borders faces the challenge of cost-effectively managing currency risk. Even small organizations with modest international operations can be impacted by currency exposures if treasurers fail to effectively manage FX.

Yet, each year, corporations incur billions of dollars in currency-related losses due to global currency volatility. In many cases, these losses are attributable to manual, spreadsheet-based currency risk management programs and processes, which are vulnerable to human error and faulty hedging strategies – strategies that hinge on inadequate or incomplete data.

Organizations relying on manual FX programs are out of step with industry best practices; as such, they remain vulnerable to global currency volatility.

This paper can serve as a guide for treasury executives who may be feeling pressure from C-levels to reduce currency impacts. It also provides treasury practitioners with insights into how (and why) automating workflows improve an organization’s ability to withstand currency headwinds.