Foreign Exchange Risk Management
Variance works closely with the finance teams of our clients with the objective of providing an exhaustive and independent advice on commodity risk management.
Investment funds, EPC contractors, private equity, service companies and, in general, organizations carrying out business at an international scale, turn to Variance for specialized advice on foreign exchange risk hedges, using a systematic 3 step approach, which includes:
Modeling the client’s financial risk profile and assessing the severity of the client’s risk exposure under unfavorable FX scenarios
Formalizing foreign exchange risk management policies
Validating the accounting implications of the envisaged FX hedge and its compliance with IFRS9 accounting standard principles before the trade
Choosing the most suitable FX hedge strategy
Accompanying the client in the daily management of all FX positions: rollovers, rebalancing, utilizations, early terminations…
At Variance we have developed proprietary risk analysis tools and pricing models to provide transparency and live prices for hedging products.
Our financial expertise, market experience, and analytical capabilities, coupled with a deep understanding of the client’s context and objectives, makes us an ideal partner in the pursue of optimal financial risk management decisions.