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 FX Risk Assessment: Exposure Identification & Measurement FX Risk Management Policy: Hedging Guidelines & Procedures Balance Sheet Hedging: Booked Receivables & Payables Cash Flow Hedging: Forecasted Revenues & Expenses 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. Start FX Training February 25, 2020By FX Initiative General accounting, assessment, balancesheet, best, cashflow, corporate, CPE, currency, economics, education, events, examples, exchange, expense, finance, foreign, forex, fxcpe, fxinitiative, hedging, learning, management, maturity, model, netinvestment, payable, policy, practices, receivable, revenue, risk, stages, subsidiary, training, treasury 0 0 Comment
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 January 28, 2020By FX Initiative Examples, General, Partnerships accounting, best, calulators, corporate, CPE, economics, examples, exchange, expense, finance, foreign, forward, fxcpe, fxinitiative, learning, management, models, option, payable, practices, receivable, revenue, risk, software, tools, training, treasury 0 0 Comment
Categorizing FX Risk Exposures (Video) Categorizing FX Risk Exposures (Video): Explore how foreign exchange (FX) transaction risk, translation risk, and economic risk impact the income statement and balance sheet. This video is a preview of FX Initiative’s FX Risk Exposures course as part of Learning Objective #1. 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 Training November 26, 2019By FX Initiative FX Risk Exposures accounting, balancesheet, cashflows, CPE, currency, economic, economics, education, expense, exposures, financialstatements, forex, forwards, fxcpe, fxinitiative, hedging, incomestatement, learning, loan, management, payable, receivable, reporting, revenue, risk, strategy, training, transaction, translation, treasury 0 0 Comment
Documenting FX Cash Flow Hedges Documenting FX Cash Flow Hedges (Video): Discover the details of FX cash flow hedge documentation and recognize how underlying exposures impact the financial statements. This video is a preview of FX Initiative’s Hedging FX Transactions course as part of Learning Objective #1. 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 Training November 19, 2019By FX Initiative Hedging FX Transactions #ASC815, #ASC830, #FAS133, #FAS52, accounting, cashflow, CPE, currency, derivatives, documentation, economics, education, expense, finance, forecasted, forex, forwards, FXCPE, fxinitiative, hedging, learning, management, revenue, risk, strategy, training, transactions, treasury 0 0 Comment
Features of FX Forward Contracts (Video) Features of FX Forward Contracts (Video): Find out the distinctive features of foreign exchange (FX) forward contracts and discover how they can be used to hedge FX risk. This video is a preview of FX Initiative’s FX Spot & Derivatives course as part of Learning Objective #1. 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 Training June 25, 2019By FX Initiative FX Spot & Derivatives, General, Webinar accounting, collar, contract, corporation, CPE, currency, demonstration, derviatives, discount, earnings, education, EPS, example, expense, expiry, finance, forward, fxcpe, fxinitiative, gain, hedge, interest, international, learning, long, loss, management, maturity, option, payable, premium, pricing, rates, receivable, revenue, risk, short, simulation, time, training, treasury 0 0 Comment
Recognizing FX Revenues & Receivables (Video) Recognizing FX Revenues & Receivables (Video): Explore the economic and accounting similarities and differences between forecasted and booked foreign exchange (FX) transactions using the FX Transaction Simulator tool. 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 Training June 18, 2019By FX Initiative FX Transaction Simulator, General accounting, Apple, application, ASC830, booked, compare, contrast, currency, demonstration, economics, education, example, expense, FAS52, forecast, foreignexhcange, forex, fxcpe, fxinitiative, learning, management, model, payable, receivable, recognized, revenue, risk, SaaS, simulation, tool, traning, unrecognized 0 0 Comment
Tracking FX Transaction Types (Video) Tracking FX Transaction Types (Video): Explore the 4 kinds of FX transactions using Apple as an example. This video is a preview of FX Initiative’s FX Risk Exposures course as part of Learning Objective #1. 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 Training May 21, 2019By FX Initiative FX Risk Exposures, General Apple, CPE, currency, debt, derivative, education, equity, example, expense, forex, forward, fxcpe, fxinitiative, gain, hedge, iPhone, learning, loss, management, option, payable, receivable, revenue, risk, sales, traning, transactions 0 0 Comment
Cash Flow Hedge Considerations Are you curious about “cash flow” hedge considerations? FX Initiative’s Cash Flow Hedging webinar covers corporate best practices and case studies on hedging forecasted FX transactions, and walks you through pros and cons public and private companies can consider when deciding whether or not to elect “cash flow” hedge accounting treatment. Get started 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 > Download the PDF April 2, 2019By FX Initiative General, Webinar Accounting, ASC815, ASC830, BestPractices, CashFlow, CPE, Currency, Derivative, Earnings, Education, Expense, FAS133, Forecast, Forex, FXCPE, FXInitiative, Hedge, Learning, Management, Revenue, Risk, Strategy, Training, Volatility 0 0 Comment
Identify The Top Two FX Hedge Objectives Ready to optimize your firm’s FX hedge objectives? FX Initiative’s Hedging FX Transactions course covers best practices employed by Fortune 500 companies and small and medium-sized enterprises (SMEs) for achieving the top two FX hedge objectives, illustrated in detail with real world economic and accounting examples. Get started 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 > Download the PDF February 26, 2019By FX Initiative FX Transaction Simulator, Hedging FX Transactions accounting, bestpractices, cashflow, cpe, credit, currency, debit, earnings, economics, education, EPS, expense, forward, fxcpe, fxinitiative, gain, goals, hedge, learning, loss, management, objectives, option, payable, receivable, revenue, risk, targets, training, transactions 0 0 Comment
How to Test FX Transactions & Hedge Strategies Ready to learn how to test FX transactions & hedge strategies? FX Initiative’s Foreign Exchange Transaction Simulator is a risk modeling tool that illustrates common FX exposures such as revenues, expenses, receivables and payables. The result is a detailed and interactive FX risk analysis that charts the economic payoff of a hedge strategy along with accounting journal entries and references to U.S. generally accepted accounting principles (GAAP). This tool serves to simplify the risk analysis process for you so you can focus on the practical bottom line impact to your global business. Get started 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 > Download the PDF February 19, 2019By FX Initiative FX Transaction Simulator, General accounting, bestpractices, cpe, credit, currency, debit, economics, education, expense, forex, forward, fxcpe, fxinitiative, gain, hedge, learning, loss, management, option, payable, practice, professional, receivable, revenue, risk, simulate, stresstest, training, transactions, VaR 0 0 Comment