Fundamental Currency Risk Management

Foreign exchange risk refers to the impact of currency rate variations on a company's financial position. These consequences can be seen in cash flows, costs, and income. Companies must be able to control the currency rate risk that might arise in either scenario, whether in favor of receivables or debts. Businesses that deal in foreign currencies struggle with these adverse consequences using internal (on-balance sheet) or external (off-balance sheet) hedging techniques. A firm may be vulnerable to the consequences of potential exchange rate swings, which might result in bankruptcy owing to its present foreign exchange position if it does not identify and safeguard the foreign exchange risks in its balance sheet.

This course has been created to clearly illustrate the process for estimating the foreign currency risk from the balance sheet, which is regularly experienced by businesses that do foreign exchange operations. The approach of assessing risk from the balance sheet, which is favored by financial experts and employed by banks in risk management, will be thoroughly described in this seminar. Do not miss this course if you want to be able to quickly manage risks by calculating your position from the balance sheet.