Instructor for this course
more

Companies selling or purchasing abroad with invoices denominated in foreign currency are exposed to foreign currency risk and thus foreign exchange risk.

This course begins with an explanation of the various types of risk and the foreign currency hedging activities available to mitigate or eliminate foreign currency risk.

Enrollees learn about multiple types of hedging instruments and gain an understanding for how to aggregate exposures into meaningful categories. Hedging examples are discussed to provide a better understanding of how to apply each instrument. The course concludes with a review of FASB’s ASC 815 requirements for Derivatives and Hedging.

Learning Objectives

  • Define the steps for effective hedging of foreign currency exposures.
  • Describe the characteristics of foreign currency hedging instruments and how they can be applied.
  • Explain the market conventions for quoting currency rates and calculate the base currency given the foreign currency exposure.
  • Illustrate how to aggregate exposures (including outstanding hedges) to provide a net currency position and hedge ratio.
  • Apply examples of hedging scenarios with various risk management objectives to illustrate the use and benefit of each hedging instrument.
  • Explain hedge accounting requirements under FASB ASC 815.

15 Reviews (47 ratings)Reviews

4
Member's Profile
A very thorough overview of hedging. The complex nature of the material was offset by the instructors slow and methodical delivery. However, the written documentation (including the exam) conflicted occasionally with the spoken instruction, leading to a bit of confusion. In particular, one slide relating to an example of hedging with options referred to a loss calculation which was actually a gain, and in the exam, a double negative should have been a single negative.
3
Anonymous Author
Good discussion of the various hedging strategies. Some of the concepts are difficult to understand and could benefit from more explanations. It would also help if all of the calculations of how the amounts are arrived at are shown in the slides. Some of the calculations are missing, leaving the audience wondering how the numbers are derived.
5
Member's Profile
Even though I have an extensive background in FX exposure management, this course provides an excellent sanity check as to the hedging practices and the current available derivatives. One drawback is that the instructor's presentation style was somewhat robotic.
4
Anonymous Author
Overall good. It would be nice if it wasn't basically reading from the slides. As the material got a little more complicated, there was not time to think thru the examples.
3
Member's Profile
Too much reading of slides. Review questions were good, and had useful feedback for errors, but I'd have liked more of them. Quite long for a 1-hour course.
5
Anonymous Author
Good presentation with relevant samples cases. A lot of information to take in. Will return to presentation and course materials for reference.
5
Member's Profile
Great course! Professor Bergman brilliantly covers the main aspects of managing foreign currency exposures in a simple and direct way.
3
Anonymous Author
Good class though definitely an advanced topic for experienced Finance/Accounting personnel.
4
Anonymous Author
Decent course. Commentary beyond what is on the slides would help with engagement.
5
Anonymous Author
Excellent course for treasury professionals with a few years under their belt.
5
Member's Profile
The examples are very useful and apply the concepts to different scenarios.
3
Anonymous Author
Good information. The material is at the intermediate or higher level.
4
Anonymous Author
Comprehensive as to subject but delivery could have been livelier.
4
Anonymous Author
thanks...
5
Member's Profile
very good

Prerequisites

Course Complexity: Advanced

Prerequisite: Previous experience in corporate finance

 

Advanced Preparation: None

 

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
Modules
  9:27Quotations and Aggregating Exposures
  19:18Use Cases & Applied Examples
  13:09Hedge Accounting
SUPPORTING MATERIALS
  PDFSlides: Managing Foreign Currency Exposures
  PDFManaging Foreign Currency Exposures Glossary/Index
REVIEW & TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM