| Description |
1 online resource (xviii, 213 pages) |
| Bibliography |
Includes bibliographical references and index. |
| Contents |
Cover -- Title Page -- Copyright -- Contents -- Acknowledgements -- About the Authors -- Preface -- Key Terms and Abbreviations -- Introduction -- Two Stylized Facts About Exchange Rates -- A Definition of FXRM -- Quoting Exchange Rates -- Outline of the Book -- Further Reading -- Chapter 1 Why Manage Foreign Exchange Risk? -- From Individual Risk Management to Corporate Risk Management -- The Case for FXRM: Cash Flow Hedging -- The Case for FXRM: Protecting Financial Ratios -- The Case for FXRM: Managing Net Income Variability -- Key Chapter Takeaways -- Further Reading |
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Chapter 2 Commercial Exposure to FX -- The Basics of Transaction Exposure -- Forecasting Net Exposures -- A Simple Model of Commercial Exposure -- Competitive Exposures -- The Mystery of the 'Underlying' Currency -- Shortcomings of the Bottom-up Method -- The Statistical Method of Exposure Measurement -- Key Chapter Takeaways -- Further Reading -- Chapter 3 Net Income Exposure to FX -- The Basics of Translation Exposure -- Monetary vs Non-monetary Assets -- The Issue of Functional vs Transaction Currency -- The Exposure Matrix -- External Exposures on Internal Transactions |
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Key Chapter Takeaways -- Further Reading -- Chapter 4 Balance Sheet Exposure to FX -- The Basics of Non-monetary Assets and Liabilities -- Reconciling the Exposure Matrix with Shareholders' Equity -- Reconciling Internal Transactions with Shareholder's Equity -- Reconciling Translation of Income with Shareholder's Equity -- The Currency Translation Reserve: A Summary -- Key Chapter Takeaways -- Further Reading -- Chapter 5 FX Derivatives Explained -- The Basics of Forward Contracts -- Determining Forward Rates -- FX Futures Contracts -- Currency Swaps -- The Basics of FX Options |
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Options from an FXRM Point of View -- Key Chapter Takeaways -- Further Reading -- Chapter 6 Hedge Accounting Explained -- Background -- Cash Flow vs Fair Value Hedging -- Cash Flow Hedging: Basic Principles -- Hedge Accounting: An Example -- Fair Value Hedge: An Example -- Net Investment Hedge: An Example -- Requirements for Hedge Accounting -- Some Perspectives on Hedge Accounting -- Key Chapter Takeaways -- Further Reading -- Chapter 7 Centralizing Exposure Management -- Centralized FX Hedging Defined -- Benefits of Centralization -- Internal Hedging Arrangements |
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Dealing with FX Exposures in Business Units -- The Centralization Process -- Key Chapter Takeaways -- Further Reading -- Chapter 8 Integrated Risk Management -- Silo-Based Risk Management -- The Core Principles of IRM -- Netting Exposures -- Correlation Analysis -- Total Corporate Performance -- IRM Programmes: Beyond the Core Principles -- Key Chapter Takeaways -- Further Reading -- Chapter 9 Managing FX Risk Exposures -- Getting the Basics Right -- A Hierarchy of FX Risk Management Strategies -- Balancing Economics and Financial Management -- Due Diligence of FXRM Policy Proposals |
| Summary |
"Corporate Foreign Exchange Risk Management offers a highly accessible yet thorough guide to FX exposure management that will appeal to anyone with who is responsible for managing a profit & loss or balance sheet affected by FX fluctuations or who wants to understand how FX fluctuations affect the firm more generally. The effective FX risk manager needs to be able to navigate both the worlds of financial management and economics. Whereas academics tend to talk about the economics of the risk management decision, the reality for the corporate manager is a strong and never-ending attention on performance metrics heavily impacted by accounting rules. This book is about bridging and demystifying these two worlds and equipping the manager with the tools and knowledge to deal effectively with a broad range of matters related to foreign exchange risk management"-- Provided by publisher. |
| Subject |
Foreign exchange market.
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Corporations -- Finance.
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Financial risk management.
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Marché des changes. |
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Finances -- Gestion du risque. |
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Corporations -- Finance |
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Financial risk management |
|
Foreign exchange market |
| Added Author |
Alviniussen, Alf, author.
|
|
Oxelheim, Lars, author.
|
| Other Form: |
Print version: Oxelheim, Lars. Corporate foreign exchange risk management. Hoboken, New Jersey : John Wiley & Sons, Inc., [2020] 9781119598862 (DLC) 2019047749 |
| ISBN |
9781119598909 electronic publication |
|
1119598907 electronic publication |
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1119598915 electronic book |
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9781119598893 electronic book |
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1119598893 electronic book |
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9781119598916 electronic book |
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hardcover |
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hardcover |
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