On this page I present some practical solutions to two common areas of treasury risk: foreign  exchange and interest rates.  I do so to highlight how thinking outside  of the box can create a risk response better suited to the corporate's objective.  The theme is about harnessing the risk in order to align it to the strategic objectives.  

The first article discusses how to develop an overall FX translation policy for a multinational Group with the objectives of supporting risk to the balance sheet leverage ratio and the overall cost of debt.  The key is to understand the exposure and analyse the various responses: in doing so this empowers management to decide from a position of strength.

The second article discusses a little known but thoroughly engaging method of presenting risk.  Simple and intuitive, this technique addresses the real question everyone asks: what is the chance of making a loss and how much could we loss?  Builds on article one, and you will be glad to hear, not a mention of standard deviation in sight... 

The third article discusses interest rate risk and puts forward some novel thoughts on the age old conundrum: fixed or floating.   Taking on the challenge with some simple, effective  and novel analyse, concepts are put forward which will help direct and inform fixed or floating positioning.

The ideas presented here are live, real world solutions with proven benefits.  Bite size chunks of theory and practical application that create value.