The book will also enable professionals to take a more proactive
approach to FXRM. The ultimate goal is improved decision-making.
We undertake a comprehensive review of the various benefits of
FXRM, thus building up the ‘business case’ for a systematic effort
aimed at managing the firm’s risk profile. Unlike many texts available on risk management, however, we also present a realistic picture of the costs related to FXRM, allowing for a trade-off between
the pros and cons. Ultimately, there should be a convincing case to
be made that the benefits are larger and that FXRM leaves the firm’s
shareholders better off.
The book should also appeal to students of business administration who seek a better understanding of corporate performance and how it is exposed to FX risk. It could be a valuable complement
to textbooks in university-level courses on finance or risk management. Our focus has been on developing a narrative aimed at ‘connecting the dots’, and putting the various parts of FXRM in a broader
perspective. These features of the book should enhance the student’s
understanding of the subject matter compared to textbooks, which
by necessity are more fragmented. For the reasons discussed above,
it also serves to bridge the two worlds of finance and accounting,
which rarely get a unified treatment at universities.