Risk Management Essentials for Exporters and Importers

• Company must have a Risk Management Policy.
• The policy should be reviewed on Regular Intervals.
• Concentrate on the business rather than on making profit out of Currency Exposure.
• Companies must decide minimum and maximum hedge ratio.
• Unhedged portion should also be monitored for adverse price movement.

Common Mistakes Companies do while Managing Risk

• Booking profits on favourable price movement and leaving the exposure open till Maturity.
• Having both Exports and imports is a Natural Hedge, which is not correct as there can be:
Amount Mismatch
Maturity Mismatch
• Waiting to book Exports at Top & Imports at Bottom.
• Mixing of trading and hedging books.

Every Company is unique and so its Risk Management policy also should be customised as per companies Risk apetite and Cash Flows.

We at Prashanti Forex are specialist in designing and implementing customised risk management framework. We are also doing FREE Risk Assessment of Companies in Export / Import Business.

For more details contact +91 84528 08533 or drop a mail at info@prashantiforex.in