FX Hedging Framework
A board-ready currency risk policy that replaces ad-hoc decisions with a defined appetite, clear ratios and disciplined execution.
What this engagement delivers
Most groups hedge reactively — a political hedge here, an unhedged exposure there — with no agreed policy and no way to measure the outcome. This framework defines your risk appetite, sets hedge ratios by exposure type, and gives the board a language to govern currency risk with confidence.
The challenge it solves
- Hedging decisions are made case by case with no consistent policy.
- Exposures are poorly identified, so real risk stays hidden.
- The board has no agreed appetite or way to measure effectiveness.
How we work
Identify exposures
Separate transactional, translational and economic exposure across the group.
Define appetite
Agree the risk tolerance and hedge ratios the board is prepared to own.
Design the policy
Write a clear, executable hedging policy with limits and delegated authority.
Instrument and monitor
Select the right tools and install reporting the board can trust.
Deliverables
Scope is defined up front and agreed case by case with your team.
The engagement, phase by phase
The sequence is fixed; the pace is agreed case by case around your priorities.
Assess
Quantify exposures and the cost of unmanaged currency risk.
Agree
Set appetite and hedge ratios with the board and audit committee.
Implement
Put the policy, instruments and governance in place.
Govern
Report coverage and effectiveness on a disciplined cadence.
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View serviceGive your currency risk a policy, not a habit.
We will map your exposures and draft a framework your board can approve.
Book a Scoping Call