Companies planning to operate in the global marketplace should prepare for the inevitable risks associated with foreign currency exchange. A variety of solutions — forwards, options, non-deliverable forwards and foreign currency accounts — can help reduce the surprises that foreign exchange rates create in your company’s 10K or 10Q financial statements. However, before you outline a foreign exchange (FX) risk management plan, you should create a formal policy for the management of foreign exchange exposure. This process will help you examine accounting and cash flow implications, but will take into consideration your risk tolerance and corporate goals.
Download the Foreign Exchange Policy Guide (PDF)