In an environment of heightened volatility, treasurers need to ramp up but also prioritise their risk management activities. Using transactional solutions alongside financial market instruments can be a valuable way of simplifying risk management for non-core currencies, enabling treasurers to focus on core risks and contribute to business success.
Accessing effective, convenient and transparent foreign exchange services is key to achieving common treasury objectives such as managing foreign currency payments and collections efficiently and protecting the business against the impact of currency fluctuations.
Visualising risk using dashboards that bring together data from across the enterprise, and modelling the impact of different market and hedging scenarios is fast becoming a priority for treasurers. The Editor reports on the findings of a recent TMI webinar.
One of the biggest challenges facing treasurers is that managing FX risk is only one element of their role and as such, they need to balance the time and resource required to manage FX alongside other key responsibilities such as cash management and funding.