Valufin tailors services to the needs of the customer. This entails determining the customer’s needs, determining the best way the needs can be addressed, reviewing the ways Valufin can deliver the solutions and fitting the solution and outcomes to the budget.
The latter is usually not a key issue in the discussion as in most cases the savings on the rates achieved from the currency providers more than pays for the service, meaning that the service received is a bonus at no cost.
There are standard areas of risk management on which we focus. These are either done as a once off function, part of the setup for an ongoing management consultancy contract or part of a due diligence or audit exercise.
Market Review and Customer Needs In this exercise we determine the way the customer should be managing their foreign exchange exposures, what options are available, what changes are appropriate, what systems should be used and what staff training is required. This exercise entails reviewing the client and reviewing the market.
Risk Assessments This exercise determines what risks are inherent in the way foreign exchange is currently being managed by the organisation. This involves a review of policies, procedures, adherence thereto and reporting. We review the timing or recording of an exposure, the hedging strategies and their appropriateness to the underlying movements in the exposure profile and the price elasticity of the product or service.
Review of Current Practice This is an assessment of how the processes are followed, who performs which tasks, the timing thereof and the recording of information. We seek to understand the relationships between the staff and the currency providers, how rates are achieved, what instruments are considered and how the information is recorded.
Foreign Exchange Accounting There are various key points in which information is recorded. The points at which the rates are defined, how they are calculated and for what purpose the values are used is very critical to accurate accounting and costing of products or services. These need to be appropriate for the business, the industry and the sales (to the end customer) success.
Foreign Exchange Audit / Due Diligence Sometimes there is a need to have an external, independent audit of foreign exchange activities. This can be a once off project or can be part of assessing a change in risk management approach or the starting point of implementation of new systems or staff. The outcome of such an audit is a detailed report and recommendations based on the brief and the findings.
Training Foreign exchange is complex. It requires immediate and constant attention and can only be monitored correctly if the key components are fully understood. Training covers internal corporate requirements as well as the Forex market and its influences on the company’s bottom line.
Knowledge and understanding allows for optimum Forex risk management
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