Importance of risk management objectives
Risk management objectives
Foreign exchange risk can affect a company’s operations in a number of ways.
In order to measure at a high level, the most important risk management
objectives among companies, we asked respondents to rank five variables
from most to least important. The most important objective was to eliminate
FX gains and losses, with 37% of respondents ranking this first. The next most
important objective was to minimize earnings volatility, with 26% ranking this
first. When first and second rankings are added together for each objective,
minimizing earnings volatility at a sum of 58% becomes the most important
objective, followed by eliminating FX gains and losses at 56%.