What is foreign exchange risk and how does it affect your business?

Management of foreign exchange risk is vital in today's business environment to protect your business from the volatility present in the exchange rate market. This exchange risk occurs when your business is required to make payment(s) or receive payment(s) in a foreign currency.

Foreign exchange risk, if unmanaged, can damage your business returns. This is because unfavourable currency fluctuations can mean the exchange rate that you budgeted on, when first initiating a transaction, can differ substantially from the actual exchange rate used to settle that transaction.

Ultimately, this means the goods that you've ordered or sold may cost you more, or you may receive less, as payments for your goods. This exchange rate risk may reduce your bottom-line profit, as you are forced to account for the costs caused by the exchange rate differences

Find out:

• How our risk management programmes can protect your business cash flow forecasts
• How we can design a risk management programme to benefit your specific business
• How you can maximise favourable currency movements
• Why you will benefit from talking to a company who specialise solely in foreign exchange

Call Hils on 0800 100-301 (09 300-9500) or click here to arrange for us to contact you.