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Risk Management
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What Can FX Risk Management Models Achieve?

by Martin Winkler, Managing Partner, Schwabe, Ley & Greiner 

Martin WinklerThe cancellation of the – supposedly – guaranteed CHF/EUR minimum exchange rate by the Swiss National Bank (SNB) has once again made clear what risk management means: preparing for unlikely events. The cancellation of the minimum exchange rate was such an event: unlikely, however not impossible to occur.

As we can see from the past, something like this happened before as Figure 1 shows (below).