Throughout the gamut of risks that multinational corporations face in the course of their regular business, there is one that is often underestimated: the currency risk. Foreign exchange (FX) is present in all aspects of these companies’ activities, from revenues and expenses that arise abroad to cross-border investments, tenders in foreign countries, or even consolidation of results in the parent’s reporting currency. In this article, we attempt to provide a methodology to tackle most, if not all, currency risks depending on their nature and corporations’ general objectives and constraints. It is inspired by some of the best practices observed in the market throughout a wide spectrum of industries and businesses.
