Risk analysis

 
Conducting business internationally in which foreign currencies are used automatically creates risks to businesses. Businesses can even have currency risks without crossing borders if competitors are international or if products they deal in are based in US Dollars.  Unmanaged risk can lead to significant losses to the bottom line, loss of competitive advantages, reduction in revenues, or financial distress of the company.  Identifying these risks is the first step to effectively managing them.  
 
Castle Currency reviews corporate operations to determine areas of currency risk exposure, timing, and current methods used in currency exchange, reporting, and risk management. 
 
Castle Currency Management will work with your company to onduct currency risk profiles to identify and confirm areas and relative magnitude of both straightforward and complex risks.  Timing issues, as well as the existence and magnitude of risk off-sets are examined.  
 
Net risks are identified and quantified in a foreign exchange risk profile which would be used in the development of a sound Currency Risk Management Plan.  It is impor  tant that the exposure managed is the correct amount.  You can’t manage what you don’t measure.  This should be periodically reviewed to ensure the proper amount, neither too much, nor too little is being managed.  This will prevent adding undesirable risk.  If error is large, reducing the timeline should be considered.
 
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