When markets are on a rollercoaster and geopolitical tensions keep everyone guessing, FX risk management becomes more than a box-ticking exercise. In a recent TreasuryXL webinar, our panel of experts gave some practical advice for treasurers and CFOs who want to get a better handle on their FX exposure. No fluff – just real, actionable insights to help you make smarter moves.

Our panelists included:

Here are our top five takeaways from the session

1. Data quality is (almost) non-negotiable

  • Prioritise what matters: Jesper made a solid point: don’t chase perfection when it comes to data. Get 80% of your data reliable and actionable, and you’re already ahead. Perfect data is a myth – focus on what’s good enough to make informed decisions. This includes data such as transaction details (like invoices, payments, and receipts), and operational data (such as internal metrics related to cash flows, sales forecasts, and budgeting).

  • Automation relies on data: Automate away, but remember: rubbish data will give you rubbish results. Make sure your data house is (relatively) in order before you start streamlining processes. But don’t wait for perfection…it never comes!

2. Simplify to avoid inaction

  • Don’t get paralysed: Seth flagged that too many companies do nothing when it comes to FX hedging, out of fear of making mistakes. But being completely exposed is a far bigger risk. Take small steps – just start hedging, even if it’s not perfect.

  • Focus on predictable flows: Got regular payroll expenses in foreign currencies? Hedge those. Leave the unpredictable stuff, like travel bookings, and adjust as needed.

3. AI can assist, but it won’t replace strategy

  • Use AI and automation for efficiency, not predictions: AI tools are great at crunching numbers and keeping you organised, but they won’t give you a crystal ball. Use AI and automation to streamline your workflow, not to guess where the market is heading.

  • Automate to eliminate guesswork: Instead of relying on FX predictions, you can automate your hedging strategies to manage risk without second-guessing market movements. Modern tech provides a reliable approach to protect your business from currency fluctuations – no market forecasts required (read our blog to find out more).

4. Prioritise what’s worth hedging

  • Know where to focus: Chris made it clear: allocate resources where it makes the most impact. If you’re running a low-margin business, prioritise a strong FX strategy. If your margins are healthier, you can be more selective.

  • Don’t sweat the small stuff: And if you’re overstretched, save your energy for hedging major exposures, not minor, non-critical flows. Focus on what could really affect your financial results. (Or outsource it to smart tech)!

5. Engage your team and stakeholders

  • Education is crucial: Chris and Seth also highlighted the importance of educating teams. Your wider finance, procurement, and sales teams need to understand FX risk so they make smarter decisions. No more flying blind.

  • Get everyone aligned: Whether you’re implementing an automated tool or a new hedging policy (check out our handy policy template), make sure all stakeholders are on the same page. Clear communication keeps everyone moving in the right direction.

Hedging smarter, not harder

Effective FX risk management isn’t about knowing everything – it’s about taking consistent, data-driven action and using tech to your advantage. The goal? Resilience, not perfection. 

And if you’re looking to take the stress out of FX hedging, Bound’s got you covered. We make it easy, so you can get on with running your business.

Want to find out just how simple our automated hedging strategies are to use? Drop us an email to help@bound.co or sign up for a demo and see for yourself!

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Stay up to date with insights and events

Enhance your finance skills by learning from our network of top industry experts

Currency hedging technology with unrivalled speed and flexibility

Copyright @ 2024 Bound

All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk.

Bound (Bound Rates Limited) is a limited company registered in England & Wales under number 13036275 with registered offices at 16 Great Chapel Street, London W1F 8FL

Bound Rates Limited (FRN 966723) is authorised and regulated by the Financial Conduct Authority to act as an Investment Firm.​

For clients based in the European Economic Area, payment services are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701).

Payment services in the United States are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here. VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.

For clients based in the United Kingdom and rest of the world, payment services (Non MIFID related products) are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).

Stay up to date with insights and events

Enhance your finance skills by learning from our network of top industry experts

Currency hedging technology with unrivalled speed and flexibility

Copyright @ 2024 Bound

All testimonials, reviews, opinions or case studies presented on our website may not be indicative of all customers. Results may vary and customers agree to proceed at their own risk.

Bound (Bound Rates Limited) is a limited company registered in England & Wales under number 13036275 with registered offices at 16 Great Chapel Street, London W1F 8FL

Bound Rates Limited (FRN 966723) is authorised and regulated by the Financial Conduct Authority to act as an Investment Firm.​

For clients based in the European Economic Area, payment services are provided by CurrencyCloud B.V.. Registered in the Netherlands No. 72186178. Registered Office: Nieuwezijds Voorburgwal 296 - 298, Mindspace Nieuwezijds Office 001 Amsterdam. CurrencyCloud B.V. is authorised by the DNB under the Wet op het financieel toezicht to carry out the business of an electronic-money institution (Relation Number: R142701).

Payment services in the United States are provided by Visa Global Services Inc. (VGSI), a licensed money transmitter (NMLS ID 181032) in the states listed here. VGSI is licensed as a money transmitter by the New York Department of Financial Services. Mailing address: 900 Metro Center Blvd, Mailstop 1Z, Foster City, CA 94404. VGSI is also a registered Money Services Business (“MSB”) with FinCEN and a registered Foreign MSB with FINTRAC. For live customer support contact VGSI at (888) 733-0041.

For clients based in the United Kingdom and rest of the world, payment services (Non MIFID related products) are provided by The Currency Cloud Limited. Registered in England and Wales No. 06323311. Registered Office: Stewardship Building 1st Floor, 12 Steward Street London E1 6FQ. The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money (FRN: 900199).