FX Workshop Senior Executive Overview

Definition and representation of basic exposures:

a generic, colour-coded, symbolic methodology for representing any foreign exchange exposures

Be a confident, pro-active risk manager rather than someone bewildered after a foreign exchange-based "ugly incident"! The principles of articulating and implementing a foreign exchange exposure management policy in a corporate governance context:

defining objectives
articulating a philosophical attitude towards foreign exchange risk
should corporate foreign exchange exposure management be centralised?
the role of limits
communicating authorities
vital internal controls
exposure reporting systems
extracting value from the banking system
knowing the right questions to ask

Other background judgment factors underlying exposure management.

Commercial and financial exposure management alternatives.

Corporate financial alternatives:

using combinations of markets to engineer financial solutions
foreign exchange and money markets
local markets and Eurocurrency markets

Pricing of alternative engineered solutions:

general principles underlying optimal selection from alternatives

Case study: selection from basic alternatives:

"cover" fully foreign exchange exposures
a commercially important, counter-intuitive solution to a common financial management problem that has the potential to save otherwise needlessly wasted money.