The results of the 2016 Foreign Exchange (FX) Risk Management Practices Survey reveal how companies responded to an FX market with significant volatility.
The results of the 2016 Foreign Exchange (FX) Risk Management Practices Survey reveal how companies responded to an FX market with significant volatility. This volatility put more pressure on corporate hedge programs, with companies often highlighting the effects of FX in their quarterly earnings reports.
The survey shows how companies responded to the current market environment and reflects how they are reacting to a heightened concern around currency moves. We encourage you to read the report to view observations about how companies are measuring and addressing FX risk, as well as learn what companies perceive as some of the biggest challenges to managing FX risk.
This short animated video highlights some of the 2016 Foreign Exchange Risk Management Practices Survey’s key statistics.
About the 2016 survey
On behalf of Wells Fargo, Bellomy Research conducted 286 interviews in October 2015 with companies that have locations in the United States and have international operations and locations. Companies ranged from having less than $100 million in revenue to more than $5 billion in revenue. A little more than half of the companies in the survey are private companies. Among the survey respondents were treasurers or assistant treasurers, chief financial officers, finance managers, and controllers.
Since our previous survey in 2014, significant volatility in the foreign exchange (FX) markets has put more pressure than usual on corporate hedge programs, with companies often highlighting the effects of FX in their quarterly earnings releases. The 2016 FX Risk Management Practices Survey results show how companies responded to this market environment. The results also reflect many of the reoccurring challenges faced by corporations attempting to manage FX risks consistent with best practices, as well as leading practices in FX risk management.