by Dipak Khot, Head of FX Solutions EMEA and, Gareth Lloyd-Williams, Head of UK Corporate Sales, HSBC
The result of the UK’s recent Brexit referendum was a shock to many, despite polls predicting a knife-edge result. The result itself was a surprise but the market events which unfolded once the ‘leave’ vote was announced revealed some of the most experienced risk management professionals were unhedged against a weaker GBP or out of the money on long GBP exposures. This stark example of event risk has emphasised the importance of a strategic hedging programme rather than a reactionary approach and should prompt many companies to re-assess their existing treasury policies and risk management approach.
HSBC has many years of experience in following the world’s most significant risk events, and a wealth of expertise. The bank is proactive in working with customers to define and implement hedging programmes which combine stability and dynamism to reflect changing market conditions.