Importance of a risk exposure forecasting in strategic foreign currency management:
Foreign currency risk exposure forecasting is a valuable tool for SMBs as it empowers them to make:
- informed future oriented decisions,
- manage currency risks effectively,
- and improve their overall financial performance in a cross-border business environment.
Top 3 Challenges in foreign currency risk exposure forecasting
1. Lack of expertise
SMBs without dedicated currency risk teams face costly exposure.
Hiring experts or investing in TMS can be unfeasible, leaving them vulnerable to exchange rate fluctuations and profit loss.
2. Transactional nature of exposure
SMBs often use spreadsheets for short-term foreign currency transactions, which can work for long-term forecasts.
However, this approach leaves them exposed to unexpected P&L shifts when FX markets fluctuate.
3. Currency pair complexity
SMBs exposed to multiple currencies face increased complexity in forecasting and hedging.
Relying on spreadsheets without reliable, forward-looking market data for key currency pairs only magnifies the challenge.
- Converting FX transactions in DIY Spreadsheets into forecasts takes forever
- Generating FX exposure forecasts against budget rate require expert knowledge
- Planning currency hedging programs without expertise is a headache
- Wasting money (and time) chasing FX data for broken dates
- One REF error can ruin months of work
- Data gaps and risks when an employee leaves
- Stuck with static, outdated systems
By implementing a currency management software, you can easily convert transactional data into a professional currency risk exposure forecasts in real-time.
Currency management software can significantly streamline the process of converting transactional data into professional currency risk exposure forecasts. By effectively utilizing currency management software, SMBs can minimize currency risk exposure, and improving overall financial performance.
Data Repository
The software acts as a central hub for all transactional data, aggregating invoices, purchase orders, and fx derivatives
Currency Exposure Calculation
The software calculates the net exposure to each currency by aggregating all transaction data (in and outflows).
Scenario Analysis
The software can simulate market scenarios, such as changes in FX rates, to assess P&L impacts on the currency exposure.
Hedging Reccommendations
Based on the forecasted risk exposure, with the software you can simulate hedging strategies, such as forward contracts, options, or currency swaps.
- Capture FX exposure with various FX budget rates in seconds using
- Automate risk exposure generation, and unrealized P&L tracking
- Easily add budget rates for each transaction or transactions portfolio
- Market data updates automatically—no need for manual entry
- Reliable, market-proven calculation and reporting engine
- Reduced key person risk with auditability and team collabs
- Secured cloud access with market data updates and sync
What Can You achieve by generating currency risk exposure forecasts in cloud based currency management software ?
Active currency management
Understand net-positions across multiple currencies, and risk when markets move.
Predict potential FX gains and losses
Understand how market moves impact your bottomline.
Automate your fx exposure forecasting
Save time, and understand easily complex data
How to start with foreign currency exposure forecasting?
#1 See the video below to understand the ease of foreign currency exposure forecasting with TreasuryView.
#2 Check out the Currency management system, to try out. TreasuryView has no integration and is free to use for 30 days.
#3 Spot Currency risks early and make better financial decisions.
You are currently viewing a placeholder content from Vimeo. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationManaging currency exposure risks in export oriented industrial and trading companies is critical.
With TreasuryView, all your data is up-to date , and analytics and dashboards are readily available, enabling better financial decisions.
Other use-cases of Currency FX Risk management
Facing challenges with currency or FX management?
Explore our use cases to find potential solutions.
- See How to record foreign currency transactions?
- See How to set FX budget rates?
- See How to track foreign currency profits & losses?
- See How to import foreign currency exposure data?
If you don’t find what you’re looking for, feel free to book a demo or contact us at sales@treasuryview.com. We’re here to help!
Frequently Asked Questions: Using TreasuryView for Currency Risk Management
How can I import my existing currency management spreadsheets into TreasuryView?
Will I lose my existing spreadsheet formulas and info?
No, your original spreadsheet formulas and information will remain intact.
TreasuryView minimizes manual work and provides quicker access to data and insights, helping you spot potential risks more effectively. Within Treasuryview cloud environment your data will be more up-to-date and actionable.
Can I collaborate with other team members in real time like with Spreadsheets files?
Yes, you can easily share your transactions and portfolio data with fellow team members allowing them to work with the same data.
Can I export data back into Spreadsheets if needed?
Yes, there is a export functionality allowing you to send deal data back to the spreadsheet.
Can I customize my TreasuryView dashboard for my Company?
Every user can create tailored dashboards and share dashboard items with fellow team members
Can TreasuryView help reduce the risk of human errors?
Which of my todays task TreasuryView can automate for me in currency risk management?
Treasuryview allows you to automate deal capture, measuring and monitoring unrealised gains and losses, management reporting as well as market data management related tasks
How does the free trial work?
Our support team is ready to assist you throughout the trial and can help ensure a smooth transition into a future partnership.
What is Currency Risk / Foreign Exchange (Forex) Risk?
Currency risk is a possible financial loss that can be the result of the fluctuation in exchange rates between currencies.
Risk is arising when the value of one currency changes relative to another currency and therefore having impact on the business and investors who have different currencies.
Currency risk is often also named as foreign exchange or forex risk.
See more FAQ about Treasury Management System or Contact us in any questions/concerns.
Get started with the easy currency risk dashboard that gives you peace of mind.
Know your data is accurate and up-to-date—always.