Episode 405
Understanding FX Exposure: Why It Matters and Where It Comes From (FinSavvy)
In this episode, Craig Jeffery speaks with David Pierce of FinSavvy about how treasury teams should understand and manage foreign exchange exposure. They explain different types of exposures, including balance sheet, forecast, and economic, and why each requires a different approach to hedging. The discussion emphasizes that hedging is risk management, not speculation, and explores how factors like interest rate differentials, margins, and time horizons impact decisions. They also highlight hidden risks such as intercompany exposures and the importance of aligning treasury and accounting to avoid unintended impacts on financial reporting.
Host:
Craig Jeffery, Strategic Treasurer
Speaker:
David Pierce, FinSavvy
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Related Resources
From Invisible to Visible: How AI Can Help Reveal FX Exposure
In this episode, Craig Jeffery speaks with David Pierce of FinSavvy about how AI can help treasury teams uncover foreign exchange exposure that is often hidden across ERPs, CRMs, purchasing systems, and other disconnected data sources. They discuss bad data, forecast accuracy, intercompany netting, real-time visibility, and why AI can improve hedging decisions by making exposures easier to identify, organize, and monitor.
