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FX Initiative Blog

Actionable insights on foreign exchange risk management from FX Initiative.

Mastering FX Risk Management Webinar

Program Overview

FX Initiative cordially invites you to attend our webinar titled “Mastering Currency Risk Management”. Join us for a continuing professional education (CPE) program and earn CPE credit as we address the fundamental concepts of corporate foreign exchange (FX) risk management. This informational session will share best practices on how to identify, analyze, execute, and optimize a foreign exchange (FX) risk management program. Participants will learn 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.
Who Should Attend?

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

CPE Webinar Invite: Cash Flow Hedging

Program Overview

FX Initiative cordially invites you to attend our webinar titled “Cash Flow Hedging” on Thursday, March 25th at 11AM Pacific / 2PM Eastern. Join us for a continuing professional education (CPE) program and earn CPE credit as we learn how to how to hedge and account for forecasted foreign exchange (FX) revenues and expenses. We will begin by defining the concept of a cash flow hedge, and how companies incorporate this type of hedge into a larger FX risk management program across the enterprise. We will then examine how FX revenues and expenses impact the financial statements with a focus on the limited visibility into a transaction’s FX gain or loss to date. From there, we will explore hedging FX revenues and expenses with forward contracts, and address the impact on cash flows as well as the options that are available to account for derivative instruments and hedging activities. Lastly, we will identify best practices for hedging forecasted FX transactions and emphasize how public and private companies prioritize their foreign exchange hedging objectives in order to achieve their desired risk management results.

Learning Objectives
  1. Discover the concept of a foreign exchange (FX) cash flow hedge.
  2. Explore how FX revenues and expenses impact the financial statements.
  3. Recognize the cash flow and accounting implications of cash flow hedges.
  4. Identify corporate best practices for hedging forecasted FX transactions.
Who Should Attend?

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

CPE Webinar Invite: Balance Sheet Hedging

Program Overview

FX Initiative cordially invites you to attend our webinar on Balance Sheet Hedging on Thursday, March 11th 2021 at 11AM Pacific / 2PM Eastern. Join us and learn how to hedge FX receivables & payables and mitigate FX gains & losses. This Balance Sheet Hedging webinar will teach you how to hedge foreign exchange (FX) receivables and payables to mitigate FX gains and losses on the Income Statement. We will begin by defining the concept of a balance sheet hedge, and explore why is it often viewed as the foundation of many corporate FX risk management programs. We will break down the impact of how FX receivables and payables, which are known as underlying positions, produce FX gains and losses on the financial statements from mark-to-market accounting treatment. We will then explore how to offset those underlying FX gains and losses on the Income Statement by hedging with forward contracts to reduce periodic earnings volatility. Finally, we examine best practices for optimizing balance sheet hedges by considering details such as accounting booking rates, netting of exposures, and adjusting hedges as balances change from cash inflows and outflows.

Learning Objectives
  1. Discover the concept of a foreign exchange (FX) balance sheet hedge program.
  2. Recognize how FX receivables and payables impact the financial statements.
  3. Explore how forward contracts can be used to mitigate FX gains and losses.
  4. Identify best practices for optimizing and adjusting balance sheet hedges.
Who Should Attend?

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

CPE Webinar Invite: FX Forward Contracts

Program Overview

FX Initiative cordially invites you to attend webinar titled "FX Forward Contracts" on Thursday, February 25th, 2021 at 11AM Pacific / 2PM Eastern. Join us and learn what forward contracts are and why they are the most used derivative. This FX Forward Contracts webinar will explain what forward contracts are and why they are the most used foreign exchange (FX) derivative among multinational corporations. We begin with a basic understanding of over-the-counter (OTC) foreign currency derivatives that are sold by commercial banks as part of their international treasury and risk management products. We will then delve into the fundamentals of forward contracts, including long and short positions and forward point premiums and discounts. Additionally, we will examine the payoff profile of a forward contract and review the economic cash flow and financial reporting implications. To conclude, we will look at the overwhelming popularity of forward contracts using the Bank for International Settlements (BIS) FX data as well as highlights from the annual reports (10-K) of several multinational corporations that deploy forward contracts to hedge currency risk.

Learning Objectives
  1. Discover the concept of over-the-counter (OTC) foreign currency derivatives.
  2. Identify what forward contracts are and how forward points are calculated.
  3. Recognize the payoff profile, economics and accounting of forward contracts.
  4. Explore why forward contracts are the most used FX derivative by corporations.
Who Should Attend?

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

CPE Webinar Invite: FX Risk Management Policies

Program Overview

FX Initiative cordially invites you to attend our webinar titled “FX Risk Management Policies” on Thursday, February 11th, 2021 at 11AM Pacific / 2PM Eastern. Join us for a continuing professional education (CPE) program and earn CPE credit as we learn how to draft a corporate foreign exchange risk management policy. This FX Risk Policy webinar will address the basics for drafting a foreign exchange risk management policy. We begin with best practice policies for pricing and booking foreign exchange (FX) transactions that enable a corporation to retain the FX risk rather than the customer, supplier or vendor. We then discuss how FX personnel, resources and operations are incorporated into a policy document that serves as a guideline for managing foreign exchange risk. Furthermore, we will cover the essential elements of a formal written FX risk management policy, including which FX exposures to hedge, how to handle counterparty credit risk, segregation of duties (SOD), internal controls, and reporting among other areas. Lastly, we will observe how FX risk policy language is disclosed in corporate annual reports (10-K) using the Securities and Exchange Commission (SEC) filings of multinational corporations as real-world examples.

Learning Objectives
  1. Discover best practice policies for pricing and booking foreign exchange (FX) transactions.
  2. Recognize how to incorporate FX personnel, resources, and operations into a policy document.
  3. Identify the essential elements of a formal written corporate FX risk management policy.
  4. Explore how FX risk policy language is disclosed in corporate annual reports (10-K).
Who Should Attend?

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

CPE Webinar Invite: Mastering Currency Risk Management

Program Overview

FX Initiative cordially invites you to attend our webinar titled “Mastering Currency Risk Management” on Thursday, January 28th, 2021. Join us for a continuing professional education (CPE) program and earn CPE credit as we address the fundamental concepts of corporate foreign exchange (FX) risk management. This informational session will share best practices on how to identify, analyze, execute, and optimize a foreign exchange (FX) risk management program. Participants will learn 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.
Who Should Attend?

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

Webinar Series: Multilateral Netting

Program Overview

FX Initiative cordially invites you to attend our webinar titled “Multilateral Netting” on Thursday, December 10th, 2020 at 11AM Pacific / 2PM Eastern. Join us and learn the fundamentals of multilateral netting for intercompany cash flows. This Multilateral Netting webinar will help you learn the fundamentals of multilateral netting. Multilateral netting, also referred to as intercompany netting, is a process in which a group of cashflows between a defined set of entities are offset against each other such that just a single cashflow to or from each entity takes place to settle the net result of all cashflows. When a multinational company has divisions in a number of countries, direct billing in many currencies can lead to excessive foreign exchange (FX) trading, resulting in both buying and selling the same currencies many times over. This educational program will help participants learn the concept of multilateral netting for managing intercompany cash flows, how netting operations are centralized and cyclical, how netting can reduce payment volume and save FX costs, as well as several key treasury related benefits of deploying multilateral netting.

Learning Objectives
  1. Identify the concept of multilateral netting for managing intercompany cash flows.
  2. Explore how global intercompany netting operations are centralized and cyclical.
  3. Discover how multilateral netting can reduce payment volume and save FX costs.
  4. Recognize several key treasury related benefits of deploying multilateral netting.
Who Should Attend?

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

Webinar Series: Balance Sheet Hedging

Program Overview

FX Initiative cordially invites you to attend our webinar series. Join us and learn how to hedge FX receivables & payables and mitigate FX gains & losses. This Balance Sheet Hedging webinar will teach you how to hedge foreign exchange (FX) receivables and payables to mitigate FX gains and losses on the Income Statement. We will begin by defining the concept of a balance sheet hedge, and explore why is it often viewed as the foundation of many corporate FX risk management programs. We will break down the impact of how FX receivables and payables, which are known as underlying positions, produce FX gains and losses on the financial statements from mark-to-market accounting treatment. We will then explore how to offset those underlying FX gains and losses on the Income Statement by hedging with forward contracts to reduce periodic earnings volatility. Finally, we examine best practices for optimizing balance sheet hedges by considering details such as accounting booking rates, netting of exposures, and adjusting hedges as balances change from cash inflows and outflows.

Learning Objectives
  1. Discover the concept of a foreign exchange (FX) balance sheet hedge program.
  2. Recognize how FX receivables and payables impact the financial statements.
  3. Explore how forward contracts can be used to mitigate FX gains and losses.
  4. Identify best practices for optimizing and adjusting balance sheet hedges.
Who Should Attend?

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

Webinar Series: FX Forward Contracts

Program Overview

FX Initiative cordially invites you to attend our webinar series. Join us and learn what forward contracts are and why they are the most used derivative. This FX Forward Contracts webinar will explain what forward contracts are and why they are the most used foreign exchange (FX) derivative among multinational corporations. We begin with a basic understanding of over-the-counter (OTC) foreign currency derivatives that are sold by commercial banks as part of their international treasury and risk management products. We will then delve into the fundamentals of forward contracts, including long and short positions and forward point premiums and discounts. Additionally, we will examine the payoff profile of a forward contract and review the economic cash flow and financial reporting implications. To conclude, we will look at the overwhelming popularity of forward contracts using the Bank for International Settlements (BIS) FX data as well as highlights from the annual reports (10-K) of several multinational corporations that deploy forward contracts to hedge currency risk.

Learning Objectives
  1. Discover the concept of over-the-counter (OTC) foreign currency derivatives.
  2. Identify what forward contracts are and how forward points are calculated.
  3. Recognize the payoff profile, economics and accounting of forward contracts.
  4. Explore why forward contracts are the most used FX derivative by corporations.
Who Should Attend?

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

Windy City Webinars Presents: IMA Young Professionals Round Table

Program Overview

WindyCityWebinars.org, a service of FX Initiative, cordially invites you to the IMA® (Institute of Management Accountants) Chicago Chapter’s Young Professionals Round Table virtual event & CPE webinar on Thursday, October 22, 2020 from 11AM to 2PM CT. Join us for an engaging and educational program that will introduce panelists and topics related to the shift in technology, trade practices, currency utilization, audit practice, board of director control, fraud risks, regulation, tax code, and corporate information security. Each panel member will introduce and guide discussions with and between the participants regarding how the changes or denial of making the changes will impact business. Additionally, attendees will be invited to join breakout sessions to interact with each panelist and other participants. Throughout the event, we welcome you to visit our online lounge to network virtually with students and professionals and expand your LinkedIn connections. Please register to reserve your seat. On Thursday, please enter the event from our Welcome Page at https://windycitywebinars.org/welcome. From the Welcome Page, click to join the Virtual Lounge & Zoom Webinar.

Topic

Digital Transformation in Accounting & Auditing
Academic, Analyst & Director Perspectives

Learning Objectives
  1. Identify potential impacts of analytics on accounting curriculum.
  2. Recognize how to prepare for the impacts brought by data analytics.
  3. Explore possible ways to create focus for your career development.
  4. Identify basic skills needed for business intelligence (BI) & analytics.
  5. Discover the foundational principles of digital forensics.
  6. Explore how deleted data can be recovered from (some) data systems.
Who Should Attend?

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

Additional Information
  • Date: Thursday, October 22, 2020
  • Time: 11:00 am to 2:00 pm CT
  • CPE Credit: 1.5 NASBA CPE Credits
  • Location: CPE Webinar & Virtual Event
  • Field of Study: Specialized Knowledge
  • Prerequisites & Advanced Preparation: None
  • Delivery Method: Group Internet Based
  • Learning Level: Overview
Contact

Please contact info@windycitywebinars.org with questions or comments.