Risk is the uncertainty associated with future cash flows or earnings. Risk management involves measuring and ultimately reducing this uncertainty. Depending on the source of uncertainty, risk can be reduced through operational or financial decisions.
By contrasting rolling hedge programs against “no hedge” and static hedge strategies, we find that rolling strategies result in more stable hedge results over time with lower period to period deviations.
Over the last five years, European treasurers have learned to manage counterparty risk, becoming more cautious when investing their funds. However, interest rates are so low today that security has a cost. How can treasurers find a return while keeping down the risk incurred?
Coca-Cola's Director of Risk Management, Supply Chain & Technical talks risk management with us - particularly focusing on the renewed interest in enterprise risk management (ERM) practices.
By establishing responsive FX and investment policies, companies have an opportunity to achieve best practice in FX risk management. We look at how this works in practice.