Insight to All Things Currency and Treasury Management

By Karli Vold,
Director, Product Marketing, FiREapps

Multinationals have always faced an array of obstacles in their fight to stay ahead, but in today’s marketplace, the list of obstacles they must negotiate has grown. Global supply-chain challenges, complicated trade agreements, shifting political allegiances and an intense M&A environment are just a few of the challenges corporate executives and board members must navigate.

Negotiating global currency volatility is another challenge on the list. After all, there have been 11 currency crises in the last 13 months alone. But unlike the other potential business hazards mentioned, C-level executives can be confident knowing they are positioned to withstand volatility – provided they find a reliable foreign exchange (FX) platform.

How do you know your FX technology partner offers the support and expertise you need to help you sleep at night knowing your FX risk is under control? Here are six things to look for when selecting a technology provider that can help you better manage FX exposure and currency risk:

Look for a SaaS platform that can adapt as needed – and employs the highest data quality standards

Look for…

  • Customized workflows for balance sheet, cash flow and income statement
  • Fast, efficient enrollments that enable you to see exposures within weeks – not months
  • Ongoing and frequent product releases and updates
  • Roadmaps that enable clients to plan long term
  • The latest data security protocols such as SSAE18, ISO/IEC 27001, SSO, Encryption and 2-factor authentication

Select a technology partner that insists on complete, timely and accurate data

Make sure your partner…

  • Has passed stringent solutions certification testing by both SAP and Oracle
  • Provides fully automated data analysis to meet both scheduled and ad hoc needs
  • Understands the need for profit & loss hierarchies, monetary asset and liability reviews and can facilitate complex mapping and data derivation
  • Delivers on-demand intercompany analysis as well as regular data integrity analysis

Pick a provider that deploys industry best practices into a standardized workflow

Select a partner that offers …

  • Step-by-step processes in data collection, exposure analysis, organic risk reduction actions, and FX hedging recommendations
  • Support and training throughout the enrollment process – and beyond
  • Multi-user access and field-level user access controls
  • Auditability – complete with a documented, compliance-friendly audit trail
  • A platform that identifies and removes manual errors and inefficiencies

Select an FX technology provider that is fully customizable to YOUR business needs

No two companies are alike. Look for …

  • Flexible system configurations based on entities, accounts, company codes, profit centers, cost centers, product lines, models, dates or geography
  • User-defined reporting, based on your organization’s preferred internal communication standards
  • End-to-end workflow development that addresses unique file formatting issues, mapping, data aggregation, data derivation, specialized reporting and internal integration issues

Find a technology partner that can adapt as your organization evolves and grows

Select a partner that offers …

  • Automated configuration updates as new entities, new subsidiaries, and new accounts are added
  • The ability to include new accounts, while deleting dormant accounts
  • Support for ERP upgrades and other periodic updates
  • Adaptability as mergers and acquisitions trigger expansion

Look for an FX exposure management vendor with a documented track record of helping others

Testimonials, case studies and satisfied clients generate a complete picture…

  • Look for a documented track record demonstrating improved treasury department efficiencies. Start with case studies, but look for industry recognition such as Alexander Hamilton Awards, Adam Smith Awards, TMI Innovation & Excellence Awards, AFP Pinnacle Awards – all of which recognize FX exposure platform superiority
  • Find a provider with a history of serving hundreds of clients across a multitude of industries
  • Seek out a provider offering years of experience in FX risk management technology

Next steps

Currency volatility cost corporations more than $10 billion in Q4, 2016 alone.

In other words, FX exposure is too important to ignore.

Yet, C-level executives and board members face an array of day-to-day concerns that make tracking global currency trends a challenge.

If you are a corporate executive or a treasury professional concerned about your organization’s FX exposure or how your company will fare in the next currency crisis, you should be working with a qualified FX technology partner.

FiREapps provides the most deployed FX management technology in the world, helping protect more than $2.56 trillion in customer market cap. We have been working with leading multinationals for more than a decade, helping them accurately identify currency risk and significantly improve financial reporting.

We have created a downloadable checklist designed to help you vet potential partners. We’re confident once you compare vendors, you will see FiREapps delivers every item on the list.