Foreign Exchange and Hedging in a Volatile Economy
404 Institute | June 01, 2010
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Foreign exchange (FX) fluctuations and unmanaged FX risk can affect cash flows, assets, liabilities, and even the market value of an international company. An increasingly global marketplace requires organizations to manage multi-currency activities and related FX through a robust framework that supports multiple FX risk management activities.
A formal hedging program requires the business to define its objectives, identify and measure risks, define its risk strategy and tolerance, aggregate and report risk, and define FX risk governance procedures.
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