Treasurers are constantly faced with the challenge of managing the P&L and its key drivers. Foreign exchange risk arising from balance sheet exposures can have a material impact on the company’s financial results and is often influenced by various sources of “noise.” Hedging and valuation are frequently linked to a specific target rate, which serves as a key driver of hedging effectiveness and therefore requires a precise and strategic management approach.

HUGO BOSS AG partnered with Bank of America to develop an innovative, automated, FX transaction-based risk management solution designed to mitigate balance sheet currency exposures while minimizing balance sheet noise. In this session, we present the solution and describe the process of developing it.