Consulting: Atlas FX-C

Effectively executed foreign exchange risk management requires specialized expertise. Even in the Treasury domain, FX risk management requires years of experience and consistent, dedicated engagement to stay current and provide the most qualified advice.

With our 40 years of combined experience focusing exclusively on foreign exchange risk management, Atlas FX has the professional expertise you need to help optimize your currency risk management strategy. We’ve successfully implemented the design, execution and management of both the income statement and balance sheet hedging programs at Dow-component companies and other emerging multinationals, and we can do it for your business.

Atlas FX-C: a solid foundation for a successful risk management program.

A viable and reliable FX risk management program begins with understanding the types of risk that need to be hedged. Our consulting team can help you define:

1) A better balance sheet hedging strategy:

• How do you quantify and manage your balance sheet exposure?

• How do you manage your intercompany transactions?

• Should you have a net investment hedge?

An accounting currency exposure arises when foreign currency-denominated accounts need to be translated to the functional currency of the reporting entity. This is a common problem for companies with foreign subsidiaries. How your accounting rate is set, or what your functional currency is, will determine if your translation gain or loss is recognized in your income statement, or in a separate component of your equity accounts.

2) A better revenue hedging strategy:

• What are your backlog risks?

• What are the local competitive dynamics?

• What are the local currency price stability dynamics? Are you hedging for a financial quarter, or another kind of pricing cycle?

In most cases, company executives who are closely involved in purchasing, marketing and production are best able to provide the answers to these questions. Finance professionals who concentrate solely on the currency markets may miss the essence of corporate foreign exchange risks. At Atlas FX, our consultants are unique in that we not only have an in-depth understanding of the foreign exchange markets, but also the broad corporate experience needed to understand actual business dynamics in order to come up with a tailored foreign exchange strategy that protects your company against adverse currency movements.

If you’re looking for the dedicated experience needed to effectively devise and deploy an FX risk solution that protects your business from potential losses, please contact us for a free consultation today.