FX Risk Management
Independent guidance and strategic advice
Many companies that are exposed to financial risk automatically focus on strategy execution in order to hedge their risk. It’s important however for companies to identify the risks they face, quantify them and work out what their risk management objectives are before deciding on when to trade and which hedging tools to use.
As your trusted foreign exchange consultants, HiFM does not transact your foreign exchange; we simply provide you with the very best, bespoke advice to protect your business from foreign exchange market risk.
Unlike many foreign exchange brokers which exist in the UK, HiFM works on a non-transactional, fee-based consultancy basis and does not disrupt your existing banking relationships in any way.
With experience in many industry sectors, HiFM acts as an additional resource for your finance team, allowing you to focus on your core business.
Our FX specialists will continually manage and review results throughout the implementation of your risk management strategy to ensure you achieve your business objectives. They offer specific advice that takes full account of your unique exposures, policies and internal attitudes to risk.
We are passionate about building strong, long term relationships and understand that this can only be achieved by gaining a deep appreciation of your business’ specific requirements.
Benefits of HiFM
- Independence – As a fee-based consultancy we represent your best interests and give you truly independent advice
- Expertise and Risk Management–The team has decades of firsthand market related experience between them gained at top ten investment banks
- Best Practice – We have been in business for over a decade and speak with many different industry sectors and have a full understanding of the different approaches to financial risk
- Informed decisions – we are thorough in our approach by first understanding your exposure and matching these up to hedging tools that are best suited to meeting your goals and objectives. We can then test the impact of these hedging tools using scenario analysis allowing you to make an informed decision
- Benchmarking and Rate regulation – Whether you are hedging assets or liabilities, FX or cash, we have the ability and the experience to give you visibility of fair value. This approach allows the client to understand the value they are giving to their bank group for ancillary business
- Structure and Corporate Governance – We put together FX and treasury policies to give structure and discipline to your hedging approach
- Education – The service in itself helps you learn the best practice ways to approach hedging
- Market Timing – When to hedge is often key and we make clients aware of market conditions, forthcoming events/data which could impact the market and also point out where technical levels exist in the market
- Economic /Outlook reports – We prepare weekly reports for clients as well as bespoke reports on the outlook for currency pairs including how their respective economies are performing. We also prepare budget reports for clients
- Mark to Market (MTM) – We calculate the mark to market valuation on clients existing hedges as required