Track: Risk Management

FX Hedging and Proactive Risk Management Techniques

Monday, October 20, 2008
8:30 a.m. - 9:30 a.m.
Room: 408 A

Foreign exchange markets have become even more turbulent, reflecting today's faster information flows and increased pricing transparency. This session will address how to develop a proper FX risk management program, and discuss the tradeoffs between creating economic value and managing earnings volatility.

Speakers:

• Amarjit Sahota
  Chief Executive Officer
  HiFX Risk Management, Inc.

• Ward C. Naughton
  Managing Director
  Hanover Partners

• Joseph M. Maurer
  Executive Board Member, HiFX and former Treasurer, Levi Strauss
  

Objectives

• Gain insight into what is required for an effective proactive FX risk management program
• Learn about different strategies and how to implement a proactive FX program, including how to communicate results to key stakeholders
• Review the tradeoffs between protecting economic value and managing quarterly earnings volatility
• Learn about processes for establishing hedging levels under different forecasted scenarios

Pre-Requisites

• An interest in expanding one's knowledgebase of foreign exchange risk management programs
• A basic knowledge of foreign exchange products

Take-Aways

• List of useful resources for developing and implementing a FX Risk Management Program
• A working template for establishing hedging levels

CPA Field of Study: MAS