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Insight to All Things Currency and Treasury Management

Nearly half of today’s financial professionals believe their organizations face more uncertainty now than they did three years ago. Topping the list of reasons is today’s unpredictable geopolitical landscape.

These findings were included in the recently-released 2018 Risk Survey Report from the Association of Financial Professionals (AFP), and both serve as important reminders why corporate finance executives must treat managing corporate currency exposures and FX risk as top priorities.

When concerns about geopolitical unrest are voiced in Boardrooms, it is usually the same time that CFOs are asked to do “something about FX”. Unfortunately, when companies lack a sophisticated currency risk management program, “doing something” is easier said than done. That’s because effectively managing FX risk requires treasury managers to have a complete picture of an organization’s currency exposures. Without visibility into exposures, there is no way to effectively manage currency risk.

 

Building an Effective FX Program

 

This is why FiREapps created the OnRamp™ program. It is designed specifically to help corporations build a reliable, institutionalized FX risk management program from the ground up. OnRamp provides companies — with no history of FX management or hedging – the necessary technology and expertise needed to put a program in place quickly.

FiREapps has been helping multinationals of all sizes launch and maintain effective currency risk management programs for nearly two decades. This deep, multifaceted experience has shaped the OnRamp Program.

By adopting the OnRamp Program, treasury professionals quickly learn to systematically identify, analyze and understand the many variables that influence FX and understand how currency volatility impacts financial results. This insight helps them master managing FX and eliminate currency surprises.

Three Steps to Effective FX Risk Management

 

FiREapps offers OnRamp as a three-step solution suite.

In the initial part of the process, FiREapps helps the treasury team to quickly and accurately identify exposure. In the second phase of OnRamp, FiREapps Risk Analysts work with corporate treasury teams to pinpoint corporate risk-tolerance levels and determine cost-effective steps to manage internal and external risks. (To accomplish this, FiREapps utilizes its unique FiREapps CoRE Analysis tool, a one-of-a-kind resource that ensures treasury executives fully understand their hedging options and how effective hedging can enhance FX exposure management.) The third step of OnRamp is the transition stage: A newly empowered treasury team, armed with the know-how and resources, proactively manages the organization’s currency risk with increased confidence.

Although treasury practitioners are usually tasked with managing an FX program, all constituents in the corporate finance chain benefit from the FiREapps On Ramp program. Treasury professionals are freed up from data gathering and their efforts are supported by sophisticated FX analytics. For treasury managers, OnRamp facilitates increased operational efficiencies and cross-functional collaboration among business units. CFOs benefit from clearly defined valuations, confidence in earnings and EPS/EBITDA predictability.

Next Steps

 

These are only a few of the benefits that come from introducing your company to a sophisticated FX Risk Management program. Download the FiREapps OnRamp brochure now to find out more.

 

 

Or simply request a demo, and FiREapps will show you how easy it is to achieve lower risks, lower costs and predictable FX outcomes.