Why FX Risk Management Is Broken–and What Boards Need to Know to Fix It
This article provides a comprehensive critique of current corporate foreign exchange risk management (FXRM) practices. The authors characterize much of FXRM as a “legacy” activity, a set of outdated, often decentralized and “earnings-driven” methods and procedures that have not been subjected to rigorous cost-benefit analysis at the enterprise level. And according to the authors, the costs of poor
