Currency risk mitigation

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The goal of the service is to formulate and implement foreign exchange risk management policy. Such a policy defines foreign exchange risk in the context of a given company and determines ways of mitigating it down to a level acceptable to the client.

The Grant Thornton advisory team addresses its services to all companies whose foreign currency exposure resulting from export or import activities may be a significant threat to the profit margin derived, and consequently to the rate of return.

The service covers the following stages:

  • Analysis of historical currency cash flows in the company
  • Defining key policy parameters affecting the level of currency risk
  • Determining instruments that the company will use to mitigate currency risk
  • Defining the procedure for approaching non-standard situations
  • Determining the scope of competence and responsibility of individual company bodies
  • Defining the procedure for reporting currency risk inside the company

As a result, Grant Thornton specialists produce a foreign currency risk management policy including control procedures at the level of the supervisory board, management board and individuals hedging currency risk in transactions with banks.

Grant Thornton advisers have many years’ experience in working in the money markets in international financial institutions both at home and abroad, which enables us to effectively manage foreign exchange risk.

To find out more about our currency risk management service, please contact our adviser.