Magazine article Global Finance

Hedging Cash Flow

Magazine article Global Finance

Hedging Cash Flow

Article excerpt

Wolfgang Koester, CEO and co-founder of FiREapps, says the answer to chronically inaccurate FX exposure forecasts is a unified solution that improves the process end to end.

Global Finance: What's new about FiREapps for Cash Flow?

Wolfgang Koester: FiREapps for Cash Flow revolutionizes the cash-flow exposure management process. Treasurers, FX managers, controllers in the field and others have had to deal with a timeconsuming manual process that often leaves holes in the forecast and is based on inaccurate data. Our new Cloudbased solution replaces the formerly error-prone process and streamlines the work flow to provide the most accurate, complete and timely data in order to have clear visibility into exposures, allowing for increased hedge ratios | the proportion of a position that is protected],

GF: How is it innovative?

Koester: FiREapps for Cash Flow specifically addresses the capture, consolidation, review and approval of cash-flow exposure forecasting, as well as the calculation and application of a hedging strategy with review and approval of resulting hedges and trades. Automatic forecast consolidation is a huge time saver to the process owner and automatically combines spreadsheets and submissions sent in from across the field into one readable and accurate master forecast. It also recommends hedges and offers straightthrough processing to trading platforms.

GF: How is it disruptive to the status quo?

Koester: Unlike traditional forecasting tools that focus on specific steps in the cash-flow exposure forecasting process, FiREapps for Cash Flow is the first solution that improves the entire process end to end. It changes the way multinationals handle their exposure management. Our early-stage clients who are using FiREapps for Cash Flow have already experienced a 20% increase in forecast accuracy, drastically increased their target hedge ratios, and have realized a more than 40% increase in forecast participation from the field. …

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