CREATING A LEAN MACHINE FOR MANAGING FX RISK
A 2010 look at how principles of quality and efficiency from the manufacturing world apply to treasury and finance's in pursuit of more efficient and effective FX risk management practices.
This white paper explores how lean manufacturing principles apply to foreign exchange exposure management practices, and how companies can benefit from applying an automated, process-driven approach to managing FX risk.
In December 2009 for the first time in a year, a majority of executives polled in a Mckinsey global survey said they expected consumer demands for goods to rise. Offering relatively positive views of the economy, respondents said they were now able to make longer term strategic plans. The biggest obstacle they expected to face as they looked ahead; heightened currency volatility. Nowhere was this truer than in the manufacturing sector, where over half of companies surveyed said that foreign exchange has an “extreme” or “very significant” impact on their profits.
This white paper explains when taking a methodical and disciplined approach, companies are able to significantly reduce the time and effort spent aggregating, validating and analyzing foreign currency data to make better risk mitigation decisions. Equally important, they create visibility to the entire process and support an environment that makes continuous improvement possible.