Global Finance Awards Kyriba Best Cloud FX Solution 2023
Currency exchange risk and currency risk awareness are at a historical tipping point. As international trade continues to grow and global economies become more interconnected, managing currency risk has become a critical concern for CFOs of large corporations. The fast-paced nature of today’s global economy, coupled with increased market volatility and uncertainty, has made it more important than ever for the Office of the CFO to have access to accurate and real-time data to help manage currency risk.
How CFOs Manage Risk in Real-Time
CFOs are faced with a number of challenges when it comes to managing currency risk. One of the biggest challenges is the need to constantly monitor and analyze large amounts of data in order to identify potential risks and make informed decisions. This can be a time-consuming and complex task, especially when dealing with multiple currencies and countries. Additionally, CFOs must also contend with the ever-changing economic and political landscape, which can quickly and unexpectedly impact currency exchange rates.
To help address these challenges, a number of companies have developed innovative solutions for managing currency risk. One of these companies is Kyriba, which has been recognized for its FX Risk Management solution in Global Finance Magazine’s Gordon W. Platt 2022 and 2023 Foreign Exchange Awards. In 2022, the company was named as the “Best TMS Provider with FX Module”, “Best Solution for FX Cash-Flow Hedging”, and in 2023 “Best Cloud Solution for FX”. “The maturity and evolution of Kyriba’s Risk Management platform is creating positive outcomes for their customers.”
Kyriba FX Risk Management Enables CFOs to Mitigate Risk
Kyriba’s FX Risk Management solutions help automate data collection workflows to ensure that risk analysis is based on complete and accurate exposure data. This enables CFOs and risk managers to make more informed decisions and take action to mitigate currency risk. The solution also integrates with Kyriba’s Liquidity Management Platform, enabling advanced cash forecasting, real-time payments and fraud protections, DSO and DPO controls along with Connectivity through an Open Architecture with APIs.. This powerful combination of solutions enables CFOs and risk managers to automate their FX risk management programs and increase the precision and predictability of their FX risk reduction objectives in real-time with multiple scenario analysis to stress test the predicted outcomes of their hedging programs.
Reducing Hedging Costs
Another key challenge for CFOs is the need to implement effective hedging strategies to manage currency risk. Hedging is a way to protect against potential losses by offsetting the risk of currency fluctuations. However, hedging can be complex and requires a deep understanding of the markets and the various hedging instruments available. CFOs, to better manage their currency risk and make more informed decisions about hedging strategies, are looking to correlated value at risk (VaR) solutions to create real impact. Kyriba’s Correlated VaR Analytics delivers insight on-demand into the amount of correlated value at risk that exists across all currency pairs within a company’s portfolio of exposures. The new solution builds upon Kyriba’s ability to aggregate and calculate FX exposure with automation, giving Risk Managers more time to leverage data insights and design programs to more cost-effectively mitigate volatility.
Managing currency risk is a critical concern for CFOs of large corporations. The fast-paced nature of today’s global economy, coupled with increased market volatility and uncertainty, has made it more important than ever for CFOs to have access to accurate and real-time data to help manage currency risk. Companies like Kyriba, Citi, Finastra, and Sberbank, who have been recognized in the Gordon W. Platt Foreign Exchange Awards, are providing innovative solutions to automate data collection workflows, advanced cash forecasting and connectivity, and implement effective hedging strategies, which help CFOs and risk managers to make more informed decisions and take action to mitigate currency risk in real-time.
Read the full article to see 2023 FX awards from Global Finance Magazine.