You Can’t Hedge What You Can’t See….Mitigating the Impact of Currency Risk

By Abby Bickford November 26, 2019

Amid Brexit and trade wars, it has never been more important to optimize visibility and control of your FX exposures. Today’s challenging times require an increased understanding of the impact of your trade decisions and how they affect the overall corporate risk profile.

With the benefit of technology and business intelligence, corporate treasury and finance professionals now have the ability to capture in real-time, a broad range of exposures, while taking on an increasingly consultative role in the business.

No better example of this is Chris Donohoe, Assistant Treasurer at Dublin-based manufacturing giant Ingersoll Rand, who spoke recently on a webinar with us about the powerful FX risk management best practices he has implemented.

Over the last three years, Chris has driven a strategy of global quantification and management of currency exposures, adopting Kyriba’s FX Balance Sheet technology (formerly FiREapps) to help improve visibility.

Having grown through acquisition, inheriting multiple ERPs and suffering a legacy build-up of tools and processes, Ingersoll Rand embarked on a significant journey to gain control of nearly 50 currency exposures across the enterprise. Chris faced a complex and challenging operational environment; the challenge of capturing exposures in order to hedge, but also of understanding the root cause of the volatility and empowering the team to understand which currencies are affecting the balance sheet, in order to manage expectations and make the right strategic decisions.

The result: a 50% reduction in currency risk exposure. To hear the full story, playback the webinar now or read the case study here.

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