Search
 

Currency Risk Blind Spots

Responses to a recent T&R webcast poll indicate that companies have gaps in currency risk management, but they may not fix them.

By Treasury & Risk Staff | Updated on September 30, 2014

Companies don’t have a good grasp of what’s going on in their foreign exchange (FX) processes, and most don’t have plans to change that fact in the near future. Those are the key results of a series of polls conducted during a recent Treasury & Risk webcast.

Among the 121 survey respondents, more than 40 percent said their FX risk management processes have “blind spots”—areas in which they don’t have visibility into FX exposures—and more than 20 percent said they don’t know whether they have blind spots. (See Figure 1, below.) This is a somewhat alarming statistic, and companies should be paying heed, according to Andy Gage, vice president of strategic market development for FiREapps.

“The fact that 64 percent of the polled corporates are either unsure or said ‘yes’ to having blind spots is not overly surprising, but it is dangerous,” Gage says. “Corporates with a blind spot do not have a full grasp on what could present itself as a surprise—positive or negative—and thus do not have all of the information they need to effectively manage currency risk inside their business.”

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.