In today's dynamically evolving market the key success factor is appropriate financial risk management, especially the risk management of interest and foreign exchange risks. We will gladly provide you with our knowledge in combination with the practice gained by cooperation within our global BDO network.
Interest rate risk arises from movements in market interest rates. With current large fluctuations in the financial markets this risk should be properly and timely identified and the use of hedging transactions should be considered that can reduce the financial risk.
Currency risk arises primarily from the firm's exposure to foreign trade, capital investments abroad or the acquisition of debt financing in foreign currencies. The aim of currency risk management is to achieve a balance between revenues and expenses which are not denominated in Czech currency. This objective can be achieved mainly through hedging transactions using derivative financial instruments.
What we can offer:
- Consideration of the possibilities of hedging transactions and devising appropriate solutions,
- Appraisal of the related tax impact,
- Preparation of possible solutions for the future
- Assistance in making appropriate marketing strategies to minimize foreign exchange risk
- Consultancy services regarding the selection of appropriate financial instruments from the money market.