This article discusses key strategic thoughts behind deciding when and how to hedge. It addresses the main pitfalls, inherent and new challenges as well as the education of the board and essential internal hedging reporting.
It also defines the appropriate tools to face (new) accounting issues, with IAS 39 and its ‘son’ coming soon. The OTC derivatives reform and its potential impacts on hedging strategies are also examined.
François MasquelierHead of Corporate Finance and Treasury, RTL Group, and Honorary Chairman of the European Association of Corporate Treasurers