A company is about to implement its new foreign exchange risk management strategy.Which of the following controls should the company have in place before it actually implements the strategy?
A) Daily and other periodic foreign currency exposure reports
B) Foreign exchange exposure limits by currency and country
C) Foreign exchange strategy reporting and review process
D) All of the given answers

Question

Quizplus · Accepted Answer

All of the given controls are necessary before implementing the foreign exchange risk management strategy. Daily and periodic exposure reports help track the company's foreign currency positions, exposure limits by currency and country ensure that the company doesn't exceed its risk appetite, and a reporting and review process allows for the evaluation of the effectiveness of the strategy. Therefore, all of these controls should be in place before the strategy is implemented.

A Company Is About to Implement Its New Foreign Exchange