The most difficult aspect of managing foreign exchange (FX) risk is gaining visibility into all of your currency exposures. In order to do so, it is important to leverage best-in-class technology that provides access to underlying sources of exposure, such as account balances and forecast data, and combines that with powerful analytics and business intelligence to enable more cost-effective risk mitigation practices.
The key to mitigating currency risk and avoiding impacts to EPS and EBITDA is having confidence in your currency data. Without access to accurate, complete and timely data, treasury is left without a clear and complete picture of the company’s exposure.
To help drive better FX risk management, Kyriba enables treasury to:
While hedging is the method that most people think of when looking to manage currency exposures, that alone will not enable companies to meet the industry standard performance metric of $0.01 EPS at risk or less.
For varying reasons, it is generally not possible for companies to hedge 100 percent of their exposures. By looking at ways to internally eliminate exposures organically, opportunities to reduce risk across the organization without needing to take out a derivative are brought to light, in turn reducing transaction costs.
Managing currency risk can be complex, but automating pre- through post-trade activities simplifies the process and helps CFOs and treasury measure hedge program effectiveness.
By determining optimal risk and cost reduction opportunities based on existing exposure and currency mix, multinationals can place more effective hedges and further mitigate FX risk.
Assess full FX exposure and risk
Determine the impact FX may have based on Value at Risk
Identify specific steps to further reduce risk and costs over time
FX Balance Sheet enables treasury professionals to measure, monitor and manage currency exposure and the associated risk from their balance sheet.Read the fact sheet
FX Cash Flow enables finance and treasury professionals to create, analyze and manage accurate cash flow exposure forecasts.Read the fact sheet
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