5 techniques Financial Directors are using to manage Brexit currency risks…
Free Download – 5 Techniques to Manage Brexit Currency Volatility.
There are endless times Financial Directors are called into meetings to explain the impact of the latest headline on business operations. Here are 4 tips to manage the hysteria surrounding Brexit and ensure focus on solid financial practices.
Discussing financial realities is more critical than ever. This is true for both internal audiences, such as executive management, and external ones like shareholders and key stakeholders require a new level of transparency. Ensure that financial documentation (like stress tests) is shared regularly and timely. This builds credibility and alignment towards handling difficult external realities like Brexit.
While news cycles are very short, FDs must show a longer trajectory and stability. Financial directors can help manage hype and hysteria by providing a historical view and a longer term outlook for the business and the financials.
There are many possible consequences of Brexit. While it is impossible to anticipate and manage all of them, some of them are clear and have already been impacting UK SMEs. There are several online tools that make identifying these risks and neutralizing them easier. Hedgewiz has a free online currency risk management tool that enables FDs to map all their exposures and model the impact here
Financial Directors can show leadership by creating a base case and alternatives for managing different functions in different scenarios. Depending on the scale and scope of the exposure, FDs would be well served to have a ‘back pocket’ plan for scaling or curtailing sales, staff, production, marketing, and the like. Some forethought as to the critical resources to achieve targets and manage political and economic uncertainty will go a long way in providing a stable hand through Brexit’s volatility.
FD’s can already take action to neutralize certain risks. Specifically, currency risks can be mitigated with professional online risk management platforms and currency risk experts. It is important for FDs to understand the nature of their exposures and have enable a company-tailored plan for reducing currency risks.
Can’t make it?
Register and we’ll be sure to send you a recording of the session of how CFOs are managing currency risks. For immediate help navigating currency risk management contact firstname.lastname@example.org