Posts Tagged ‘FX risk’

Brexit Lessons Learned: How to Prepare for FX Market Shocks

After 51.9% of UK citizens voted for a Brexit 0n 23rd June 2016, the pound plunged to a 30-year low and markets from New York to Tokyo were hit by extreme volatility. Although Britain’s finance minister assured that the UK was prepared for the unexpected, the pound lost again the following Monday. Post this date…

Read More

How to Efficiently Manage Enterprise-wide FX Risks in Mid-Market Companies

As mid-market companies start seeking revenues outside their domestic markets, they are increasingly exposed to FX risk. Treasurers are challenged to set up a risk framework and find tools to help them control currency volatility. In a recent Reval survey, 37% of about 150 finance professionals working in companies with less than 1 billion revenues…

Read More

Reval Recommends: Top 10 Articles in February 2016

Reval’s Solutions Consulting team helps treasurers from around the world leverage technology for operational and strategic challenges. They keep a strong pulse on the market and are Reval’s think tank. Their focus is on best practices for financial risk, cash and liquidity management strategies and tactics. As such, here are their must read articles from…

Read More

Cash Forecasting Workarounds: Why You Lose When You Hoard Cash

Many treasurers have been stockpiling cash instead of putting together accurate liquidity plans. What seemed to be a good workaround, doesn´t work in today´s turbulent markets. Let´s review why you should not hoard cash, but do proper cash forecasting: 1. Cash piles up quickly under the radar Usually, finance professionals hold more cash than needed,…

Read More

VaR / CFaR: Differences in a Nutshell

Most finance professionals are familiar with the concept of Value at Risk (VaR), since it is widely used by financial institutions to estimate the potential loss of market values on a portfolio. The Cash Flow at Risk (CFaR) approach is a close cousin of VaR, measuring potential shortfalls of cash flow impacting the P&L statement…

Read More