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FX Initiative Blog

Actionable insights on foreign exchange risk management from FX Initiative.

September 2020 Newsletter

Fall FX Training & Tips: Explore our September newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

Hypothetical FX Hedging

To become proficient in any skill, including currency risk management, practice makes perfect. To help companies practice, FX Initiative’s Foreign Exchange Transaction Simulator addresses a wide variety of FX scenarios by stress-testing hypothetical FX hedging strategies.

This interactive risk modeling tool illustrates the economics and accounting of the most common hedging strategies for underlying foreign exchange exposures such as revenues, expenses, receivables, and payables. You can simply input your company specific and foreign exchange market variables, and then select your hedging strategy, which includes not hedging or hedging with a forward contract, vanilla option or zero cost collar.

The resulting output is a highly detailed interactive FX risk analysis that charts the economic payoff of your selected hedging strategy, ranks the alternative hedging strategies, and reports the accounting journal entries and t-accounts with authoritative references to U.S. generally accepted accounting principles (GAAP). Behind the scenes, our robust pricing engine and database simplifies the risk analysis process for you so you can focus on the bottom line impact to your business.

This versatile tool transforms 16 inputs into one information rich analysis in 3 easy steps.

  • Step 1 is to select (1) the Underlying Exposure and input the related variables of (2) Functional Currency, (3) Foreign Currency, (4) Underlying Notional Amount, (5) Beginning Exchange Rate, (6) Currency Quoting Convention, (7) Start Date, (8) End Date and (9) the Day Count.
  • Step 2 is to select a (10) Hedging Strategy and input the related variables of (11) Hedge Ratio %, (12) Domestic Interest Rate, (13) Foreign Interest Rate, (14) Implied Volatility, and (15) the Collar Range.
  • Step 3 is to forecast (16) the ending exchange rate to see how positive and negative changes in exchange rates impact the cash flow and financial reporting of your selected hedging strategy.

This FX risk management web application customizes strategies and can be modified efficiently and effectively. For example, if you want to change your underlying exposure or hedge strategy, it’s as simple as one-click. If you want to know which strategy yields the best outcome, all 4 strategies are ranked for you automatically. If you want to see how the default or elective accounting treatment differ, the journal entries and t-accounts are instantly presented side-by-side. This Foreign Exchange Transaction Simulator acts as your own personal quantitative analyst, and puts you in a positions to make a qualified foreign exchange risk management decisions.

To begin practicing hypothetical FX hedging, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com.

Currency Learning Center

As the end of August approaches and schools are back in session, FX Initiative offers access to our online Learning Center for paid training and free content to help your company conquer corporate currency risk management safely and remotely. Explore our FX articles, videos, courses, tools, and webinars. Our goal is to help sharpen your FX skills, contribute to your professional development, and add to your firm’s performance and profitability.

Explore FX Learning Center >

We look forward to sharing more FX updates and insights with you in 2020 and beyond. Whether you are new to foreign exchange or a seasoned professional, continue following FX Initiative for your FX risk management formula. To learn more, start your FX risk management training today, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples & events at FXCPE.com.

August 2020 Newsletter

Summer Learning Sessions: Explore our August newsletter and discover the latest blog posts and insights from FX Initiative. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

July 2020 Newsletter

Summer Learning & Earning: Explore our July newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

Involving Student Interns

FX Initiative is pleased to welcome and support student interns in summer 2020. Internships are designed to help students add substantive and unique experience to their resumes. Our goal is to provide students with opportunities to gain work experience, explore career paths, develop and refine skills, network with professionals, and build confidence as they earn compensation and transition into the workforce.

To facilitate our internship program this summer, we are participating in DePaul’s Coleman Entrepreneurship Center's Startup Internship Program, which gives undergraduate students hands-on experience working closely with founders on specific projects at a local Chicago startup. The 2020 summer internship program is a remote opportunity to help stay engaged in meaningful work during the COVID-19 pandemic.

These internships are designed to be experiential learning opportunities for students and a chance to see first-hand the challenges that startups face. Interns will be working on significant tasks that contribute to the success of the organization. Areas of involvement include performing market research, creating educational content, developing marketing and sales strategies, and enhancing website functionality.

FX Initiative remains committed to keep learning alive and accessible to all with continuing professional education (CPE) programs that promote business best practices. With a focus on the Chicago community, we welcome business leaders and corporate sponsors to contact us about working with our student interns on innovative CPE training and marketing initiatives. To learn more, contact support@fxinitiative.com.

June 2020 Newsletter

Explore our June newsletter and discover the latest blog posts and insights from FX Initiative on currency risk management. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >

 

Structuring Summer CPE Sessions

Summer is an ideal season to structure learning and earning opportunities. From sharpening skills to sharing insights, our continuing professional education (CPE) sessions are designed to serve your organization’s professional development needs. Through live webinar training, we provide internal and external marketing opportunities to capitalize on recent events impacting the foreign exchange market, as well as to coincide with quarterly or annual planning processes.

Whether you are interested in a timely session related to current events such as COVID-19 or would like a formal way to start goal setting for a new calendar or fiscal year, our live webinar sessions are fully customizable and capable of addressing your group training needs. Each live webinar is eligible for CPE credit, and offers the ability to collaborate on content, engage the audience with real time poling and survey questions, and participate in question and answer segments.

Our CPE programs help organizations around the world stay current on the latest regulations, developments, and trends in finance, accounting, and related business industries while earning CPE credits to maintain professional credentials. As a member of the NASBA National Registry of CPE Sponsors, we cover a broad range of knowledge, skills, and abilities that enhance competence and increase confidence in participants’ ability to improve performance and profitability.

Leading organizations that prioritize professional development realize greater return on investment (ROI). Quality training that directly relates to job responsibilities benefits both the employee and the bottom line. Not only are employees more knowledgeable and capable after completing our training, but they are able to apply their knowledge for the benefit of their customers and the firm. To learn more about CPE opportunities, please contact support@fxinitiative.com.

Windy City Summit Webinar

With the cancellation of the 2020 Windy City Summit, our originally planned live learning session will be held remotely. Registration for this program is open to the public. If you are a Windy City Summit sponsor or attendee and would like to learn more about remote learning opportunities, please contact us at support@fxinitiative.com.

Please join us for this educational webinar on Mastering Currency Risk Management, which addresses best practices on how to identify, analyze, execute, and optimize a foreign exchange (FX) risk management program. This informational session covers the fundamental concepts of corporate foreign exchange (FX) risk management, including how to assess a firm’s FX risk profile using a step-by-step analysis framework, the four approaches for managing FX risk, the impact FX risk has on the financial statements, and key terminology and takeaways for building a world class FX risk management program.

LEARNING OBJECTIVES

  1. Discover how leading multinational corporations identify foreign exchange (FX) risk, including transaction, translation, and economic risk.
  2. Explore how to analyze FX risk management strategies, including balance sheet hedging, cash flow hedging, and net investment hedging.
  3. Identify key considerations when executing FX risk management plans, including the importance of strategy, policy, and financial reporting.
  4. Recognize approaches to optimizing FX risk management plans by investing in personnel, resources, and operations to improve results.

We are a Chicago based organization, and similar to the Chicago Fire of 1871, we are committed to offering a rewarding “silver lining” experience by salvaging the summit’s valuable learning opportunities. Please join our webinar on Wednesday, May 20th 2020 on Mastering Currency Risk Management by registering here.

 

May 2020 Newsletter

Making May Training Meaningful: Explore our May newsletter and discover the latest blog posts and insights from FX Initiative. We help finance, accounting, treasury, and sales professionals stay up to date with new training content, CPE webinars, and helpful tips & resources.

Scale the learning curve quickly and easily with our foreign exchange risk management training, which provides 24/7 365 access to our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Start Training >