FX Reviews – Research

Client Brief

A rapidly growing market research business with global operations was expanding into North America, Europe and Asia Pacific. Acknowledging its need to mitigate resulting currency exposures, the organization engaged PMC to review its FX risk management approach.

PMC Solution
  • Develop a currency model for the business which incorporates adjustments for the complexities of its system of international recharging;
  • Work with management to develop an FX policy document;
  • Assist the group to hedge their FX exposures for the current financial year ensuring that appropriate pricing are obtained from their banking partner.
Results & Recommendations

By developing a tailored currency model and then drafting of a Board-approved policy document, we enabled the business to establish a strong basis for an initial hedging programme and also future risk management decisions.

  • Understand the real, underlying FX exposures that your business faces
  • Show how your FX risks can be better managed in both financial (cash flows and balance sheet) and commercial terms
  • If you have a new management team
  • When FX markets are volatile
  • During acquisition/divestment activity
  • Or if you simply want a specialist to optimize your approach

Your bespoke review will consist of two phases:

  • Stage 1 – Management level meeting to understand your FX risks, the current risk management approach and any other commercial/financial constraints. We will then provide practical recommendations for improvement
  • Stage 2 – Generation of an FX model and draft Board policy document, providing the quantitative basis and governance framework for hedging activity

We also offer representation on Treasury Committees where FX is a key risk being managed.

  1. Experienced and independent specialists providing clear insights into, and applying current market practices towards the management of, your FX risks
  2. Providing a clear road map for improvement or reassurance that no change is needed

At the end of this process, you will have the practical analytical and policy tools, in a bespoke solution, for the ongoing and effective management of your FX risk