Business Foreign Exchange Risk Management

We help companies develop straightforward and robust solutions to sometimes complex risks and exposures

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Please kindly contact Jack Georgeson directly regarding all FX Risk Management Questions and Enquiries.

Phone: +44 (0) 203 854 6802


Currency Risk is Often a Frustrating By-Product of Trading Globally

Unfavourable foreign exchange trends both increase business costs and damage commercial margins. They also impact the value of assets on balance sheets.

International Commercial Contracts

Companies often agree overseas business contracts which are paid or received at futures dates or over extended periods. Cash flow timings are often subject to change.

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Multi Currency Exposures
  • Customers pay in multiple currencies
  • Suppliers paid in multiple currencies
  • Company accounts denominated in a single currency


Currency Volatility Risks

We help companies develop solutions to protect business margins and costs.

  • Import/export cost risks
  • Business/contract margins
  • FX timing/cash flow risks
  • Balance sheet translational risks
FX Forecasting
  • Consistently predicting future exchange rates is incredibly speculative.
  • Forecasting over long periods is particularly difficult.
  • A multitude of factors contribute to exchange rates.
  • We help companies develop solutions to protect commercial margins.

Corporate Foreign Exchange Risk Management


FX Budget Rates

What process do you currently use to formulate budget FX rates? Are you satisfied the current budgeting process is effective for company needs and requirements? We can help support this process in a way that complements all aspects of the business. We can also help you formulate strategies to protect budget rates and limit the chance of accounting FX losses.

If foreign exchange makes up a significant proportion of your business turnover and fluctuations have a material impact on business costs and profitability. We can help with overall budgeting and FX strategy.


Mark to Market Valuations

Do you account for the mark to market valuations of FX hedging contracts in monthly and annual accounts? Does this cause volatility in income statements? There are a range of FX hedging solutions which have very different valuation profiles. If this is a factor you consider when deciding which hedging strategies to adopt, we can be of assistance.

Can you quickly request contract valuations from your current FX broker or relationship bank? We can help you gain a direct view of the position of your hedges and also the valuation profile at a variance of live market currency cross prices.

Currency Management

FX Risk Management Strategies

There are a broad range of currency hedging strategies available to support company currency exposures. If you are reviewing the strategies used at present, we are open to discussing and offering our suggestions and support. There are also a broad range of Corporate FX Risk Management Products available, we can help match your business profile and goals to help best achieve your ultimate business aims.


FX Hedging Credit Facilites

Are you aware of the specific credit terms offered by your bank or FX Broker? We can review all aspects of your credit facility from initial deposit terms to variation credit parameters. Would you like to secure FX hedges over a longer period? Does your current credit facility have a maximum timeframe or tenor limit? We can secure FX hedging contracts up to 5 years into the future.

We are very happy to discuss improving your current FX Hedging terms. This will range from improving the credit terms of existing facilities, reviewing the overall cost of hedging and analysing the types of currency risk management contracts being utilised, if alternatives may better help you achieve business goals. Specific FX hedging solutions can help reduce credit exposure allowing target volumes of FX risk to be managed whilst also conserving cash flows and limiting the risk of tying up business cash in variation margin deposits.

Margin Deposits

Initial and Variation Collateral

Are you satisfied with the credit terms offered by your current FX providers and relationship banks? If credit is an important driver impacting your FX Hedging decisions, we are interested to discuss if move favourable terms could be achieved. Ultimately it is important to manage currency exposure and protect business margins. But you will also aim to avoid tying up cash collateral and deposits in FX hedges which could be used more productively in other areas of the business to fund growth.

We can achieve prompt commercial decisions and aim to improve initial and variation margin credit terms. If you need to fix a large and long-term foreign exchange hedging contract and would like to benchmark the most favourable credit and pricing terms available, then please reach out for a discussion. We can often organise bespoke terms which are commercial for all parties. For example, you might need to secure currency exposure as part of a lending or financing agreement over 3 years. If the lending covenant require the FX risk is hedged as part of the funding but the lender also does not want to take on the currency hedging contracts. This is a scenario where we could offer extra value extending large scale credit facilities with prompt decisions.

Currency Forecasts

FX Forecasting

Do you use currency forecasts to drive FX hedging decisions? We view it very difficult to accurately forecast FX movements over a consistent and extended time-period. Often it is useful to take a broad view of the relative strength or weakness of a currency cross in comparison to historic levels, particularly over longer historical periods. This is supportive of risk management decisions.

We feel an effective hedging program and approach should primarily secure downside risk. Whilst it can be frustrating when the exchange rate moves favourably after securing a particular contract. If business margins are priced in and fixed from the outset and costs protected, then the outcome provides reliable and consistent commercial results.

In some circumstance, no risk management becomes speculative. If there is a substantial unfavourable FX trend and you are unable to revalue or pass on the costs, this can have a significant impact on business costs and commercial margins sometimes even resulting in overall losses.

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We are always happy to help and there are no obligations.