Jankensgård, Håkan
[VerfasserIn]
;
Alviniussen, Alf
[Sonstige Person, Familie und Körperschaft];
Oxelheim, Lars
[Sonstige Person, Familie und Körperschaft]
Why FX Risk Management Is Broken - And What Boards Need to Know to Fix It
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 27, 2015 erstellt
Beschreibung:
In this paper we rethink the role of Foreign Exchange Risk Management (FXRM) in corporate management. We believe it is fair to characterize FXRM, on the whole, as a legacy activity rather than something that reflects a realistic cost-benefit analysis at the enterprise-level. The Board of Directors, as the designated guardians of the interests of shareholders, has a key role in setting the firm on a path towards a cost-efficient and centralized FXRM that preserves the firm's transparency and predictability towards the investor community. A policy conclusion from our analysis is that responsibility for FX policy should shift from the traditional Finance/Treasury orientation to a group risk function (e.g. a Chief Risk Officer) supported by a risk committee dedicated to integrated risk management