Foreign Exchange Exposure Management from Art to Science by tyndale


									                                                      ™           Foreign Exchange Exposure
                                                                  Management from Art to Science

Finally, a better way to manage your
foreign exchange exposure
Today, most multinational corporations struggle with
foreign exchange exposure management processes that
are cumbersome, manually-driven and error-prone.
Despite the adoption of sophisticated ERP systems,
multi-currency general ledger systems and advanced
consolidation and reporting tools, the majority of
multinational companies still struggle with this key issue:

    “What is the foreign exchange exposure to our
    balance sheet and cash flow forecasts and how
     can we protect our margins, our revenues and
        the value of our firm from unanticipated
              foreign exchange volatility?”

Until recently, the typical approach to this problem              The result?
involved more art than science. Processes that relied                 Increased Predictability
heavily on manual data entry and on complex                           Eliminate foreign exchange related surprises and
spreadsheets produced foreign exchange exposure data                  reduce the impact of currency volatility on earnings
that was incomplete and unreliable. Ad-hoc data entry                 Reduced Costs
errors combined with institutionalized formula errors                 Reduce the size, volume and related costs of your
found in over 90% of spreadsheet models delivered                     foreign exchange transactions
results that failed to inspire any confidence in analysis or
                                                                      Streamlined Operations
decisions derived from that data.
                                                                      Reduce time, effort and resources spent gathering
Beyond data integrity issues, manual process and                      and analyzing data and problem solving you can
spreadsheets afford no visibility into the root causes of             focus on strategic economic decisions
foreign exchange exposures, so that achieving a                       Institutionalized Compliance
comprehensive understanding of total foreign exchange                 Ease the burden of compliance with FAS 52, FAS 133
exposure and making informed decisions becomes an                     & risk management policies by ensuring data integrity
insurmountable task. Luckily, there is an alternative.                and institutionalizing FX best practices

FiREapps™ automated processes, accurate data                      Tools to Manage the Entire Foreign Currency
and informed decisions                                            Exposure Life Cycle
Companies today who want to protect their forecasted              FiREapps applies structured and disciplined data
revenues, margins or balance sheets from the impact of            management, analysis and reporting capabilities to the
foreign exchange volatility can rely on FiREapps to               challenge of managing foreign exchange exposure
automate and institutionalize best practices, ensuring            impacts on forecasted revenues and expenses, as well as
data integrity and providing a holistic view of foreign           to balance sheets. Whether you need to insulate your
exchange exposures supported by rule-based decision               balance sheet from FX volatility or protect forecasted cash
management technologies.                                          flows from future foreign exchange rate uncertainty,
                                                                  FiREapps allows you to manage the entire foreign
                                                                  currency exposure life cycle.

                                               "Utilizing FiREapps has provided JDA access to world
                                                    class currency risk management processes."
                                                          Kristen L. Magnuson, Chief Financial Officer, Executive Vice President
                                                                                                                   JDA Software
FiREapps ForecastFX workbench helps treasurers to              FiREapps ForecastFX : from fortune telling
address exposures to forecasted revenues and margins.          to reliable cash flow forecasting
FiREapps TransactionFX helps to manage their balance
                                                               FiREapps ForecastFX capabilities focus on helping companies
sheet exposures related to monetary assets and liabilities
                                                               manage accounting and economic foreign exchange
affected by foreign exchange. Together, they take the pain
                                                               exposure to future cash flows, allowing them to eliminate
and uncertainty out of reducing exposure and eliminating
                                                               the uncertainly of foreign exchange impacts on forecasted
risk throughout the entire foreign exchange exposure
                                                               revenues and margins.
                                                               With ForecastFX companies can:
FiREapps TransactionFX : from a balancing act                     Gather relevant financial data and organize it into
to accurate balance sheets                                        account groups based on policies and processes of
FiREapps TransactionFX capabilities focus on helping              your business in way that’s simple and auditable
companies manage their foreign exchange exposure                  View exposures from an accounting or an economic
impacting the balance sheet, presenting a dashboard               perspective, in a time series based on a company’s
view of exposures with drill-down access to account-level         own defined planning horizon, and forecast confidence
detail and patent-pending analytical and decision-making          Quickly identify root causes of foreign exchange
tools to effectively and cost efficiently eliminate exposure      exposure and get recommendations for the best way
and reduce risk.                                                  to effectively and cost efficiently eliminate exposure
                                                                  and reduce risk
With TransactionFX companies can:
   Automate the process of identifying, quantifying, and       How to Learn More:
   validating foreign exchange balance sheet and transaction   To learn more about FiREapps or to schedule an on-line
   exposures—making the entire process more accurate,          demo of our solutions, visit us at To
   more efficient and easier to audit and reproduce.           learn more about emerging best practices related to
   Easily visualize and understand the root cause of balance   managing foreign exchange visit
   sheet exposures from monetary assets and liabilities        Feel free to call us at 1.866.928.FIRE (3473).
   such as A/R, A/P, Cash and Intercompany Balances.
   Make informed exposure management decisions based
   on FiREapps rules-based recommendations and refine
   your decisions through real-time what-if scenarios that
   allow you to assess the impact of your strategy.

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