Live Session: Strategic FX Risk Management: Tools and Techniques for Stability

Cross-Department Collaboration

A key point was the involvement of various departments in FX risk management, beyond just treasury and finance. Effective risk management benefits from input from procurement, supply chain, and accounting teams, ensuring accurate pricing and successful hedging strategies.

Management Support and Risk Oversight

Panelists highlighted the importance of support from senior management. Without it, FX risk management efforts can fall short. They advised treasurers to make a strong case for investing in the right tools and processes.

Antonio stressed the role of treasurers in educating management: “The tool is what gives you the resource to be able to tackle the problem. The responsibility of the treasurer is to open the eyes of upper management of why they need investment in that area. It’s the duty of the treasurer to generate the location, to raise the awareness of how impactful this can be, of how costly a manual mistake can result.”

Additionally, having a detailed risk register and dedicated committees is crucial for addressing risks thoroughly.

Pieter de Kiewit emphasized that tools alone can’t address all challenges: “Don’t understand the underlying problem because they didn’t think about it, or they’re just not smart enough. But the tooling will do so much so, I suppose if you do tooling well, you will present a certain percentage, but it will never be 100%, because you can’t blame the hammer for being a really bad carpenter uses it so the training is still essential.”