In today’s global economy, multinationals cannot afford to leave FX risk to chance.
It is often difficult to decide which currencies are worth the cost of hedging and many companies are caught off guard when some of the biggest impacts come from currencies they weren't expecting that were also relatively cheap to hedge against.
As an organization it can be difficult to decide if you should protect against the currencies that you do the most business is in or hedge against the currencies that are smaller, but have more volatile movements.
By utilizing the Cost and Risk Efficiency (CoRE) Analysis, treasury and finance professionals are able to:
- Assess their organization's full FX exposure and risk
- Determine the impact FX may have based on the Value at Risk (VaR)
- Identify the trade-offs between cost and risk reduction in order to make optimal hedging decisions