VoiceOver users please use the tab key when navigating expanded menus

CASE STUDY: FX Risk Management


Analysis, Risk Modelling And Hedging Strategies

Tags

  • Australia
  • Energy
  • Foreign Exchange
  • Resources
  • Risk Management

“ANZ reduced the volatility in our earnings by an astonishing 300%.”

manage risk & exposure


We have a range of solutions to suit your needs.

Find out more about better management of your foreign exchange risk with ANZ.

Read more

Our board had raised concerns about our FX exposure. There had been on-going FX rate movements that seemed at odds with atypically stable ‘FX realised’ accounting entries. They wanted to better understand our exposure from a cash perspective and how effective our existing internal hedging program was.

ANZ modelling specialists spent time with us to better understand our hedging methodology, using both theoretical and actual examples. Their ‘what if’ analysis revealed that our existing practices were only partially effective in mitigating our FX exposure.

The new FX hedging methodology they implemented:

  • Moved hedging time.
  • Reduced volatility in our earnings by an astonishing 300%.
  • Secured our future earnings.
  • Made us much less exposed to currency movements.

About Viva Energy Australia

Viva Energy Australia is the exclusive licensee of Shell products in Australia. Their mission is to keep local industry moving, with Shell fuels, lubricants, chemicals, marine products and bitumen.

“Their expertise in hedging strategies and methodologies helped us drastically improve our internal hedge program.”

Gary Brown, Head of Finance
Viva Energy

RELATED INSIGHTS & CASE STUDIES

insight


Funds Finance in Asia: The Rise of Capital Call Facilities

The Funds market in Asia is maturing in response to the changing demand dynamics in the region.

Read more

case study


FX Risk Management: Unique Business Requirements and Non-Traditional Currency Pairs

Having the ability to set up and deal in non-traditional currency pairings makes all the difference.

Read more

case study


FX Risk Management: Large Currency Transactions and Hedging

Reducing the risks inherent in single, large scale currency transactions.

Read more

1) By Regulation
a. Dodd-Frank

2) By Business
a. Foreign Exchange Wholesale Disclosure

3) By Country
a. US Disclosures