- 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.
Case study: comparison of solutions engineered to guarantee certainty as opposed to being deliberately uncovered:
- speaking the language of foreign exchange professionals: forward points and their calculation
- how to take a calculated risk