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FX Initiative Blog

Actionable insights on foreign exchange risk management from FX Initiative.

Engaging Student Entrepreneurs

To help support students studying entrepreneurship strategy, FX Initiative is pleased to collaborate with DePaul University’s Coleman Entrepreneurship Center. During the spring semester, we will be working with a team of student entrepreneurs to deliver a series of remote learning sessions designed to serve the professional development and networking needs of the Chicago business community. 

The Coleman Entrepreneurship Center (CEC) empowers students, alumni, and community members to build sustainable businesses that do good and do well in Chicago. The CEC is a premier hub to connect, advise, and inspire entrepreneurship and innovation. To learn about their experiential programs, vibrant ecosystem, and academic curriculum for entrepreneurial success, visit cec.depaul.edu.

Founded in Chicago by DePaul alumni in 2010, FX Initiative is a global foreign exchange (FX) continuing professional education (CPE) provider of on-demand training, online tools, and webinar topics on currency risk management for corporate finance, accounting, and treasury professionals. We welcome the opportunity to provide real world experiences and support student growth opportunities.

In the weeks ahead, we will be announcing new projects and remote learning sessions that are open to the public and accessible online. We welcome business leaders and corporate sponsors to contact us about contributing the success of this student collaboration. To support initiatives between DePaul’s Coleman Entrepreneurship Center and FX Initiative, please email support@fxinitiative.com.

FX Initiative is focused on foreign exchange, and our mission is to help your international business succeed abroad by teaching corporate currency risk management best practices. 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.

 

Windy City Summit Remote Learning Session

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.

As health and safety remains a top priority, we fully support the timely decision of the conference organizers. Following increased concerns about COVID-19 over the past few weeks, it was determined that canceling the event was the safest option for all involved. For additional information, visit the Windy City Summit website.

As many are shifting work routines and showing resilience, FX Initiative remains committed to our mission serving as a global foreign exchange (FX) continuing professional education (CPE) provider of on-demand training, online tools, and webinar topics on currency risk management for finance, accounting, and treasury professionals.

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.

 

Remote FX Risk Management Resources

Whether you work remotely or are highly mobile, FX Initiative provides a suite of foreign exchange (FX) risk management training and tools to help treasury professionals and sales teams achieve their objectives inside and outside of the office. If you need to research a foreign exchange educational topic related to your global business, or want to simulate a foreign exchange risk management strategy using our interactive examples, we offer a wide array of quality informational topics and tools that can help you manage FX risk.

FX Initiative is designed to make complex foreign currency matters simple and manageable, and is accessible 24 hours a day 7 days a week to meet your global business needs whenever and wherever a FX opportunity arises so you can make the right decisions to meet your FX objectives. Get acquainted with our educational topics and interactive examples, then review and test your knowledge with quizzes and CPE exams. Throughout your learning experience, visit our terms glossary and FAQ for help along the way.

Benefit from our currency risk management educational videos, review quizzes, CPE Exams, CPE Credits, and Certificates of Completion:

  1. Foreign Exchange (FX) Market Overview
  2. FX Risk Exposures
  3. FX Risk Management
  4. FX Spot & Derivatives
  5. Hedging FX Transactions
  6. Hedging Foreign Subsidiaries

Apply theory to practice with our suite of interactive examples to help reinforce learning concepts and model risk management strategies:

Our training is available 24/7 365 to help you with FX risk policies, FX accounting, FX hedge strategies, and everything FX risk management related. Controllers and consultants alike can enhance their FX policies and procedures and simulate common hedging strategies using our collection of tools to clarify complex issues in real time and mitigate currency risk when transacting across borders.

FX Initiative is focused on foreign exchange, and our mission is to help your international business succeed abroad by teaching corporate currency risk management best practices. 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.

 

FX Risk Management Maturity Model


Foreign exchange (FX) risk management involves identifying, analyzing, and prioritizing various foreign currency exposures, and developing and implementing a coordinated and systematic plan that utilizes company resources efficiently and effectively to mitigate FX risk.

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, and as a result, the impact on the bottom line can vary widely across organizations.

This FX Risk Management Maturity Model outlines the 5 stages of a comprehensive currency risk management program. The process involves performing a FX risk assessment, developing a FX risk management policy, and implementing progressive FX hedging strategies.

5 Stage FX Risk Management Maturity Model

  1. FX Risk Assessment: Exposure Identification & Measurement
  2. FX Risk Management Policy: Hedging Guidelines & Procedures
  3. Balance Sheet Hedging: Booked Receivables & Payables
  4. Cash Flow Hedging: Forecasted Revenues & Expenses
  5. Net Investment Hedging: Subsidiary Earnings & Equity

The design and implementation of a FX risk management program must take into account the specific goals and objectives of the firm, the organizational structure and operations, the line of products and/or services, and any other variable that may be material and of relevance.

For firms that are new to foreign exchange risk management, emphasis should be placed on progress over perfection. Initial risk management plans are never perfect, and should be viewed as a process that is responsive to change and capable of continuous enhancement.

To learn more about FX risk assessments, policies, and hedging 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.

White Label Web Applications

FX Initiative's white label web applications are designed to help treasury professionals and FX sales teams with a wide variety of foreign exchange (FX) risk management challenges and opportunities. Whether you are creating a FX risk policy or analyzing economic and accounting scenarios, our risk models and strategy simulations share best practices in easily understandable formats.

Examples include:

  • FX Risk Policy
  • FX Terms Glossary
  • ISO Currency Codes
  • Foreign Subsidiaries
  • FX Revenues
  • FX Expenses
  • FX Receivables
  • FX Payables
  • FX Spot Transactions
  • FX Forward Contracts
  • FX Option Contracts
  • FX Zero Cost Collars

 

Our white label web applications are branded with the client's logo and embedded as an iframe into the client's website. An iframe is one of the most convenient HTML structures, and is an embedded window on the client’s web page that shows content hosted on FX Initiative’s servers. In 4 simple steps, our solutions can be deployed on the client's website quickly and easily with minimal technology resources.


Learn More

Mastering Currency Risk Management Webinar

Program Overview

Join us for an educational webinar on Mastering Currency Risk Management as we address the fundamental concepts of corporate foreign exchange (FX) risk management. This informational session will share how to assess a company’s FX risk profile using a step-by-step analysis framework, the four approaches for managing currency risk, and the impact FX risk has on the financial statements. Participants will learn key terminology and best practices for incorporating company personnel, operations, resources, and policy into a world class FX risk management program.

Learning Objectives
  1. Discover how leading multinational corporations manage foreign exchange (FX) risk.
  2. Explore FX risks on the Income Statement, Balance Sheet, and in annual reports (10-K).
  3. Recognize FX terminology such as transaction risk, translation risk, and economic risk.
  4. Identify the essential elements of a world class corporate FX risk management program.
Who Should Attend?

New and seasoned finance, accounting, treasury, and related professionals (CPA, CIA, CRMA, CFE, etc.) interested in international business.

Complying with the FX Global Code


Complying with the FX Global Code: The FX Global Code explains the set of global principles of good practice in the foreign exchange (FX) market, and was introduced by the Bank for International Settlements (BIS) Markets Committee in May 2017. To date, over 500 market participants have signed Statements of Commitment to the FX Global Code.

The FX Global Code aligns with the foreign exchange (FX) risk management best practices FX Initiative teaches to FX market participants, including FX sales teams and treasury professionals. The goal of the FX Global Code is to promote fairness in FX trading, and FX Initiative encourages our audience to learn about and benefit from the code in 2020.

 

Ready to learn more about FX risk management best practices? 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.

Prioritizing FX Risk Policies & Procedures (Video)

Prioritizing FX Risk Policies & Procedures (Video): Learn the importance of a foreign exchange (FX) risk management policy and explore how firms such as Apple put formal plans into place. This video is a preview of FX Initiative’s FX Risk Management course as part of Learning Objective #2.

 

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.