Measuring and Reporting


Any plan is only as good as its results. The adage, “you can’t measure what you don’t know” is a key to any good risk management practices. It is therefore imperative that an understandable and relevant means to measure results against expectations is developed.  This would be unique to each company and formulates an integral part of our consulting services.

A benchmark or means to measure the performance needs to be determined.  Many companies will implement some type of FX strategy without having any means to determine its effectiveness.  This can be dangerous as it may look successful at times, but there may be significant underperformance, excess costs, added risks, or missed opportunities.  The most appropriate benchmark would be determined based on the companies many risk factors and objectives.

Type of Benchmark
• Spot rate
• Forward rate
• Budget value
• Volatility
• Profit Margins
• Compare to Booking Rate
• Model Portfolio


Castle Currency can design new reporting methods and procedures or review existing ones.

Executed hedges and account statements require verification to ensure proper execution and allocation.  Support services are provided in this function, acting as a “double check” to prevent errors from occurring.

1.     Daily reconciliation:   Castle Currency will verify the daily reports provided by your company.  This is an important task to ensure that the correct amounts are being managed.  Castle Currency will assist to ensure directives from board of directors are met.

2.     Monthly reports: Castle Currency will provide monthly reports to summarize the currency impact and existing positions aimed at measuring and reporting the effectiveness of risk management activities in achieving the objective of stabilizing returns and enhancing margins.

3.     Proper FX Accounting Procedures: Uniform FX accounting procedures, booking procedures, and multicurrency general ledgers are required for all FX transactions.  Realized FX hedges need to be reconciled in the appropriate accounting periods and ensure all outstanding hedges follow the selected method of accounting.

"Denial is common tactic..."
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Business Risks Companies Face
"What types of risks can currency movements cause to a business?"

Currency Movement Risks
"What different types of currency movements should I be concerned of?"

Hedging Strategies
"You may already have strategies to manage your risk, see why Castle Currency provides effective strategies which can add to your existing ones"

Conversions - Best Rate
"you can capture a significant amount of money by improving the rate you get for conversion – let us help"

Risk Analysis
"It is important that you are managing the proper risk amount. We can help ensure it is neither too much nor too little"

Sensitivity Analysis
"Do you know what effect a significant currency move would have on your bottom line? We will show you then help you do something about it"

Risk Audits
"Have a third-party review your internal operations, it removes potential conflict and provides objectivity"

Currency Risk Management Plan
"Could you benefit from a Currency Risk Management Plan?"

Centralized Foreign Exchange
"Do you have one division buying USD at the same time another is selling?"

"Could your team benefit from more knowledge of currency risks and how to mitigate them. We would love to show them how"

Budgeting Currency to Margins
"Does it not makes sense to customize your currency risk management strategies to meet your margin expectations and limitations?" We strongly believe it does "

Fully Managed Services
"We watch the currency markets 24 hours a day – why not focus your time on your core business?"

"How can you be sure you are effectively managing your risk?"

"Do you know what your risk is at any given time? Shouldn't you?"

"Hire professionals who are experts at managing currency risk. Be aware of the difference between one who takes orders and conducts trades compared to one who analyzes not only the market but your specific business.

Risk Analysis
What is the worst-case scenario for your company right now?

Risk Management
"Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning."

Currency Risk Management Plan
Developing an effective Risk Management Plan is an important part of any project

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