Forex Risk
Management

Many businesses remain partially or fully unhedged due to fragmented exposure tracking or unclear risk ownership.

1. FX managemnt:

Identify transactional, translational, and economic FX exposures

Map currency inflows and outflows by tenor

Assess natural hedges within the business

Define hedge ratios aligned with risk appetite

Build exposure calendars linked to cash-flow timelines

Outcome:

Clear visibility of FX risk

tructured exposure mapping

Improved decision-making

2. Margin Protection & Cash-Flow Stability

FX movements can compress margins even when operating performance remains strong

Our strategies aim to lock in profitability while retaining flexibility.

What we do:

Protect import and export margins against adverse currency moves

Stabilize INR-based costs and realizations

Support budgeting, pricing, and profitability planning

Design strategies to smooth P&L volatility

Align FX strategy with working-capital requirements

Outcome:

Predictable margins

Reduced earnings volatility

Better cash-flow planning

3. Hedging & Structured FX Strategies

We design customized FX hedging solutions based on exposure size, time horizon, and risk tolerance.
Instruments Covered:

Forwards & swaps

Vanilla options (calls & puts)

Structured strategies (seagulls, collars, range-forwards)

Participative hedges and zero-cost structures

Our hedging approach:

Strategy selection: defensive vs participative

Strike and tenor optimization

Premium vs protection trade-off analysis

Entry, rollover, and exit planning

Continuous monitoring and recalibration

Outcome:

Downside protection with controlled costs

participation in favorable currency moves

Disciplined hedge execution

4. Policy Framework, Governance & Reporting

Strong FX outcomes require structure, not ad-hoc decisions.
What we do:

Assist in drafting FX Risk Management Policies

Define limits, instruments, and approval matrices

Support hedge accounting alignment

Provide transparent reporting and performance reviews

Enable internal governance and audit readiness

Outcome:
✔ Strong risk governance ✔ Audit-ready documentation ✔ Consistent hedging discipline

Why Choose Us

Deep expertise in USD/INR and global EM currencies

Practical understanding of RBI actions, global macro, and capital flows

Independent, execution-agnostic advice

Strategies aligned to cash flows—not speculation

Ongoing advisory, not one-time recommendations

Who We Serve

Importers & exporters

Commodity traders

Manufacturing & FMCG companies

Corporates with foreign-currency liabilities or receivables

Contact Us Now