Mastering Treasury: Hedging, FX, Cash Management & More

By Eugene Spevakov

28/04/2025

Running a treasury function across borders comes with its own set of challenges – but it doesn’t have to feel overwhelming. From managing fx risk to staying on top of global cash flow and collections, success comes down to having the right approach. Eugene Spevakov shares hands-on tips and insights to help you manage day-to-day treasury tasks with confidence.

Hedging (why do it in a first place):

Hedging often gets labeled as unnecessary, with some thinking it’s just a gamble.

The real purpose of hedging isn’t about winning or losing, it’s about managing risk where the expected return is zero and the outcome is uncertain.

In business, you must take risks where you have control and the potential for positive returns, and hedging helps protect you from the bad risks that could harm your success.

Watch Eugene explain hedging risk

International operations, pricing currency, and FX implications

If you’re pricing your products in your local currency, like USD, and have a global sales presence, you might think you’re shielded from FX risk.

However, you could be passing that risk onto your customers and missing out on better terms or pricing.

Alternatively, pricing in your customer’s currency and managing FX risk through a solid hedging program can help you stay competitive without constantly adjusting prices.

See how FX pricing impacts your business

Cash management in a global setting

Managing FX and cash flow is one of the biggest challenges when expanding internationally.

It’s not just about having a bank in the new country; you also need to consider handling payments, payroll, taxes, and different currencies across multiple accounts.

The key is balancing your cash flow—avoiding both shortages and excesses to ensure smooth operations and maximize financial returns.

Explore global cash management tips

Read also: Interview | 8 Questions for Eugene Spevakov, the New treasuryXL Expert

Metrics for the effectiveness of collections

DSO is often misleading when measuring the effectiveness of collections, as it’s influenced by factors like sales seasonality rather than just collection efforts.

Instead, you might consider using ratios like AR past due or weighted averages to get a clearer picture of overdue amounts and the performance of your collections team.

Ultimately, a combination of metrics is needed to truly assess collection effectiveness and maintain a balance between working capital and the P&L.

Understand why DSO isn’t enough

Steps towards efficient cash management

Managing cash efficiently is essential, especially in a high-interest rate environment where the opportunity cost of idle cash rises.

Focus on three key areas: streamline processes to move cash efficiently, involve cross-functional teams like accounting and tax in decision-making, and use treasury management systems for better visibility and execution.

By aligning these elements, you can ensure your cash is working as hard as possible for your business.

Discover 3 steps to smarter cash use

If you want to dive deeper into any of these topics or have specific questions, don’t hesitate to reach out to Eugene. He’s always happy to help and share his expertise!

Eugene Spevakov

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