Lower your exposure to exchange risk

When you conduct business overseas, you will have to convert currencies involved at the prevailing exchange rate.

Since most currencies are valued according to the market, there are constant changes in exchange rates. This gives rise to exchange rate risk.

An unexpensive solution is the use of Netting:

Companies spend millions each year practicing Hedging. Netting is the ideal complement, as it reduces the amount of currencies to hedge.

How to practice netting:

Netting is the practice of maintaining an equal level of foreign receivables against foreign payables.

To conduct a Netting exercise, you need a cross-functional team, with a treasurer, a controller, a seller and a buyer working together.

Netting is a good occasion to work on receivables and payables, reducing your Working Capital at the same time.

OG-Consultant is specialized in cross-functional management for costs reduction and will help you achieve this goal.

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