As the C-suite continues to seek to understand the potential impact of foreign exchange (FX) volatility on earnings, executives are increasingly looking to the treasurer to limit the negative effects of FX risk on the business. How, then, can treasurers revamp their hedging approaches in 2020 to help meet these goals and add value to the business?
Managing FX risk remains one of treasurers’ highest priorities. Although markets are not necessarily unusually volatile at present, treasurers need to remain aware of ongoing geopolitical uncertainty. Many treasurers must also manage exposure to a wider range of currencies as their international growth continues.
As outlined in the 2019-2020 Journeys to Treasury report produced by BNP Paribas, the EACT, PwC and SAP, these challenges are all too familiar to Jeff Hawkins, Group Treasurer of Fisher & Paykel Healthcare (F&P). Headquartered in New Zealand, F&P specialises in respiratory and acute care as well as the treatment of obstructive sleep apnoea – and sells into more than 120 countries worldwide. With 99% of sales made internationally, managing foreign exchange (FX) risk is a major treasury priority.