How to create a foreign exchange risk management plan
By ATB Financial 27 June 2023
A business that exports or imports products from a country outside of Canada, has operations in another country or has commodities that are priced in another currency may want to consider a hedging program to mitigate risk, and gain protection from the volatility of currency exchange rates.
“As companies start to understand how their business is affected by uncertainty in the currency markets, it’s vital they consciously manage that uncertainty,” says Janek Guminski, Managing Director of Foreign Exchange Sales at ATB.
The following five steps are important components of your FX Risk Management Plan:
- Identify your exposure
- Set detailed goals
- Develop a plan
- Choose your tools
- Evaluate your results
Ready to create a plan?
First, let’s get a couple of details about your business, so we can provide you with the right advice.