Advisory Services

Treasury
Solutions

Strategic FX policy design, exposure management, and hedge programme implementation for institutional treasuries.

Advisory Services

FX Policy Design

Develop comprehensive hedging policies aligned with board risk appetite and accounting treatment

Exposure Management

Identify, measure, and monitor currency exposures across operations, balance sheet, and P&L

Hedging Strategy

Design optimal hedge ratios, instruments, and execution timing based on cash flow forecasting

Treasury Operations

Build operational infrastructure for trade execution, confirmation, settlement, and reconciliation

Example: Hedge Policy Framework

UK Exporter - $20M Annual USD Revenue

Exposure Profile:

• $20M annual USD receivables
• Average 90-day payment terms
• 15% gross margin (very sensitive)
• 10% GBP/USD move = 150bps margin impact

Policy Response:

• Hedge 100% of invoiced receivables
• Hedge 70% of signed orders (pre-invoice)
• Hedge 40% of committed pipeline (6-month forecast)
• Use forwards (certain) + collars (uncertain)

Result: Protects 85-95% of margin, leaving controlled residual risk

UK Importer - €15M Annual EUR Purchases

Exposure Profile:

• €15M COGS (Cost of Goods Sold)
• 60-day supplier payment terms
• Budget set at 0.8500 EUR/GBP
• 5% adverse move = budget overrun

Policy Response:

• Rolling 12-month hedge programme
• Layer €1.25M monthly for 12 months forward
• 100% hedge on purchase orders (committed)
• Weekly reconciliation: hedge vs actual orders

Result: Budget certainty, smoothed average rate vs spot gambling

Frequently Asked Questions

Build a Robust Treasury Function

Work with our treasury advisory team to design your FX framework.

Advisory Services

Treasury
Solutions

Strategic FX policy design, exposure management, and hedge programme implementation for institutional treasuries.

Advisory Services

FX Policy Design

Develop comprehensive hedging policies aligned with board risk appetite and accounting treatment

Exposure Management

Identify, measure, and monitor currency exposures across operations, balance sheet, and P&L

Hedging Strategy

Design optimal hedge ratios, instruments, and execution timing based on cash flow forecasting

Treasury Operations

Build operational infrastructure for trade execution, confirmation, settlement, and reconciliation

Example: Hedge Policy Framework

UK Exporter - $20M Annual USD Revenue

Exposure Profile:

• $20M annual USD receivables
• Average 90-day payment terms
• 15% gross margin (very sensitive)
• 10% GBP/USD move = 150bps margin impact

Policy Response:

• Hedge 100% of invoiced receivables
• Hedge 70% of signed orders (pre-invoice)
• Hedge 40% of committed pipeline (6-month forecast)
• Use forwards (certain) + collars (uncertain)

Result: Protects 85-95% of margin, leaving controlled residual risk

UK Importer - €15M Annual EUR Purchases

Exposure Profile:

• €15M COGS (Cost of Goods Sold)
• 60-day supplier payment terms
• Budget set at 0.8500 EUR/GBP
• 5% adverse move = budget overrun

Policy Response:

• Rolling 12-month hedge programme
• Layer €1.25M monthly for 12 months forward
• 100% hedge on purchase orders (committed)
• Weekly reconciliation: hedge vs actual orders

Result: Budget certainty, smoothed average rate vs spot gambling

Frequently Asked Questions

Build a Robust Treasury Function

Work with our treasury advisory team to design your FX framework.

TreasurySolutions

Advisory Services

FX Policy Design

Exposure Management

Hedging Strategy

Treasury Operations

Example: Hedge Policy Framework

UK Exporter - $20M Annual USD Revenue

UK Importer - €15M Annual EUR Purchases

Frequently Asked Questions

Build a Robust Treasury Function

TreasurySolutions

Advisory Services

FX Policy Design

Exposure Management

Hedging Strategy

Treasury Operations

Example: Hedge Policy Framework

UK Exporter - $20M Annual USD Revenue

UK Importer - €15M Annual EUR Purchases

Frequently Asked Questions

Build a Robust Treasury Function

Treasury
Solutions

Treasury
Solutions