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Description

Foreign Exchange Risk: Identifying Exposures, Hedging and Protecting Margins

Protecting the margin of a business invoiced in foreign currencies without multiplying unnecessary hedges

  • 1 day — 7 h
  • In-person or virtual
  • Intermediate
  • Up to 6 participants

A company buys in US dollars, invoices in pounds sterling and consolidates its subsidiaries in euros. The commercial margin calculated at signature is nowhere to be found at collection, and nobody can say whether the gap comes from the price negotiated or from the exchange rate. Hedges are taken case by case, sometimes on flows that already offset one another.

Focused on currency rather than on interest rates, this 7-hour programme teaches how to map transactional and translation exposures, build a net position by currency and by maturity, choose between a forward contract and an option, and then measure hedging performance against the budget rate adopted.

Learning objectives

  • Map transactional and translation foreign exchange exposures
  • Build a net currency position by currency and by maturity
  • Define a budget rate and use it as a management reference
  • Compare a forward contract and a currency option on a given flow
  • Decide on natural hedges before using any financial instrument
  • Measure hedging performance and report it to executive management

What makes this programme different

The net position is built currency by currency from a multi-currency order book provided during the session
Internal netting is quantified before any bank hedging so that participants can measure what it avoids
A tracking sheet for the budget rate and foreign exchange variances is built live in the session

Programme

1Mapping and measuring foreign exchange exposure

From commercial flows to the net position

  • Transactional risk, translation risk and economic risk
  • How exposure arises, from quotation to collection
  • Building the net position by currency and by maturity
  • Reliability of cash flow forecasts and managing uncertainty
  • Defining the budget rate and its role in pricing

2Reducing exposure before hedging it

Natural hedges and contractual clauses

  • Matching purchases and sales in the same currency
  • Intra-group netting and centralisation of flows
  • Choice of invoicing currency and indexation clauses
  • Foreign currency accounts and management of collections
  • Impact on commercial relationships and limits of the approach

3Hedging with instruments and monitoring results

Forwards, options and performance measurement

  • Mechanics and pricing of forward foreign exchange contracts
  • Currency options and the logic of the premium
  • Reduced-premium structures and acceptable counterparties
  • Accounting for foreign exchange transactions under IFRS and recognised differences
  • Monitoring foreign exchange variances and reporting to executive management

Who is it for

Treasurers and international finance managers as well as credit managers, management controllers, accountants handling foreign currencies and export order management supervisors

Prerequisites

Familiarity with the international invoicing cycle and with the basics of corporate treasury

Dates & locations

24 scheduled dates between November 2026 and December 2027. Seats are confirmed in the order enquiries are received.

November 2026

December 2026

January 2027

February 2027

March 2027

April 2027

May 2027

June 2027

September 2027

October 2027

November 2027

December 2027

None of these dates suit you? We open additional sessions on request, and any programme can be run privately for your team.

Practical details

Before the programme
Online positioning questionnaire. Your development objectives are shared with the trainer, who tailors the practical case studies to your context.
Teaching methods
Theoretical input, workshops and practical case studies. Digital course materials and method sheets provided.
Assessment
Multiple-choice tests and role-play exercises. Assessment of learning at the start and end of the programme, with immediate and 60-day follow-up evaluations.
After the programme
One year of access to the e-learning platform. Self-assessment of the skills acquired and a 30-day follow-up session with your trainer.
How to register
Registration online or on the basis of a quotation.
Lead time
11 working days after confirmation of registration.
Accessibility
Accessible to people of determination. Contact our accessibility coordinator to design a suitable solution: contact@mpf-academy.ae
Start dates
Rolling intake: in addition to the scheduled sessions, this programme can start on request.