Simulating Foreign Exchange Strategies In the field of foreign exchange (FX), companies are managing currency risk exposures and hedging strategies more effectively by using business intelligence (BI) tools that provide data analysis and visualization. To support global businesses, FX Initiative offers a unique suite of specialized simulation tools that model common FX risk management strategies and demonstrate best practices for preserving assets on the balance sheet and mitigating FX gains on losses on the income statement. Our FX Transaction Simulator helps treasury professionals gain valuable insight by modeling the economic and accounting impact of specific hedging strategies for underlying foreign exchange exposures such as revenues, expenses, receivables, and payables. Users can simply input their company specific and foreign exchange market variables, and then test a variety of hedging strategies, which include 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. The first step 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. The third and final step 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. By leveraging our suite of FX risk modeling tools, finance, accounting, and treasury professionals can address a wide variety of FX scenarios that can be customized 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 FX Transaction Simulator acts as your own personal quantitative analyst, and puts you in a position to make more qualified foreign exchange risk management decisions. To start simulating FX strategies, 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. Start FX Risk Management Training > September 15, 2020By FX Initiative Examples, FX Transaction Simulator accounting, analytics, business, compare, contrast, currency, data, demonstration, economics, education, example, expense, finance, forecast, forex, fxcpe, fxinitiative, intelligence, learning, management, model, payable, receivable, revenue, risk, simulation, strategy, tools, training, treasury, visualization 0 0 Comment
Conquering Currency Risk Management Conquering currency risk management involves identifying, analyzing, and prioritizing various foreign exchange (FX) exposures, and developing and implementing a coordinated and systematic plan that utilizes company resources efficiently and effectively to mitigate and optimize FX risk. An important part of mitigating FX risk is hedging exposures such as revenues, expenses, receivables, payables, assets, liabilities, and equity. The degree to which companies implement adequate foreign exchange risk management practices can vary substantially, from not managing the risk at all to engaging in robust hedging activities. As a result, the FX impact on the bottom line can vary widely across organizations. Global companies face questions including, but not limited to: How to manage currency risk? How to draft a FX risk policy? Where to look for FX risk exposures? What currency risks to hedge and how? Which strategies meet FX hedge objectives? What are the economics? How to do FX accounting? That's a lot of questions! It's time to take the FX Initiative! FX Initiative's foreign exchange risk management training starts with watching our online video series about: Foreign Exchange (FX) Market Overview FX Risk Exposures FX Risk Management FX Spot & Derivatives Hedging FX Transactions Hedging Foreign Subsidiaries Then, review and test with quizzes and CPE exams, and reinforce learning using real examples with our: Currency Code Locator FX Risk Policy Drafter FX Derivative Speculator FX Transaction Simulator FX Subsidiary Consolidator FX Initiative training is available 24/7 365 to help you with FX risk policies, FX accounting, FX hedging strategies, FX risk management, and more. Are you ready to manage FX risk? Become a FX Initiative subscriber today and access our complete suite of foreign exchange (FX) continuing professional education (CPE), examples and events at FXCPE.com. Managing FX risk has become a higher priority for many firms in 2020 and it is now easier than ever to learn the fundamentals of currency risk management. Make this the year to reduce FX risk and reap rewards abroad by taking the FX Initiative for your international business today! Start FX Risk Management Training > September 8, 2020By FX Initiative General accounting, assets, corporate, courses, CPE, currency, economics, education, equity, examples, expenses, finance, fxcpe, fxinitaitive, learning, liabilities, management, model, ondemand, payables, receivables, revenues, risk, selfstudy, simulation, training, treasury, webinars 0 0 Comment
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 > View Newsletter September 1, 2020By FX Initiative Examples, General accounting, CPE, currency, development, education, examples, fall, finance, fxcpe, fxinitiative, hedging, insights, learning, management, model, newsletter, professional, risk, simulation, strategy, training, treasury, updates, videos 0 0 Comment
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. Start FX Risk Management Training > August 25, 2020By FX Initiative Examples, FX Transaction Simulator accounting, ASC830, booked, compare, contrast, currency, demonstration, economics, education, example, expense, FAS52, forecast, forex, fxcpe, fxinitiative, hedging, hypothetical, learning, management, model, payable, practice, proficient, receivable, recognized, revenue, risk, simulation, stresstest, tool, training, unrecognized 0 0 Comment
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. Start FX Risk Management Training > August 18, 2020By FX Initiative Examples, General accounting, articles, center, courses, CPE, currency, development, education, finance, forex, formula, fxcpe, fxinitiative, hedging, learning, management, professional, progress, resources, risk, school, tools, training, treasury, videos, webinars 0 0 Comment
Back-to-School Suggestions As the school year approaches with pandemic related changes to the classroom environment, FX Initiative remains committed to continuously enhancing our foreign exchange (FX) risk management training. To complement the transition from in-person meetings to online environments, we are working on improving our suite of FX topics and tools to better serve your currency risk management needs safely and remotely. We are listening closely to our audience of finance, accounting, and treasury professionals with the goal of providing useful and innovative virtual learning and business resources to keep organizations engaged online during the pandemic and beyond. Help us improve by sharing your feedback regarding what you like about our FX training and how we can do better. Take our short survey: https://www.fxcpe.com/feedback > August 11, 2020By FX Initiative General accounting, back-to-school, classroom, collaboration, CPE, currency, development, engagement, exchange, feedback, finance, foreign, forex, fxcpe, fxinitaitive, learning, management, online, professional, remote, risk, survey, tools, topics, training, treasury, virtual 0 0 Comment
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 > View Newsletter August 4, 2020By FX Initiative General, Webinar accounting, Chicago, CPE, currency, development, examples, finance, fxcpe, fxinitiative, hedging, insights, learning, management, model, newsletter, professional, risk, sessions, simulation, sponsors, strategy, students, summer, training, treasury, updates, videos, WindyCity 0 0 Comment
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 > View Newsletter July 7, 2020By FX Initiative General accounting, Chicago, CPE, currency, development, education, examples, exchange, finance, foreign, forex, fxcpe, fxinitiative, hedging, insights, learning, management, model, newsletter, professional, risk, sessions, simulation, sponsors, strategy, students, summer, training, treasury, updates, videos, webinars, WindyCity 0 0 Comment
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 > View Newsletter June 2, 2020By FX Initiative General accounting, CPE, currency, development, examples, exchange, finance, foreign, forex, fxcpe, fxinitiative, hedging, insights, learning, management, model, newsletter, professional, risk, simulation, strategy, summer, training, treasury, updates, videos 0 0 Comment
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. May 26, 2020By FX Initiative General, Partnerships, Webinar Accounting, CPE, Currency, Derivative, development, earning, Education, Finance, FXCPE, FXInitiative, Goals, Growth, Hedging, Improvement, interns, learning, Management, Objectives, Performance, Productivity, professional, Profitability, Progress, Results, Risk, summer, training, Treasury 0 0 Comment