Consulting Services

Foreign Exchange (FX) Risk

When trading internationally, foreign exchange risk can take on various forms and greatly impact your business.

Foreign Exchange (FX) Risk

When trading internationally, foreign exchange risk can take on various forms and greatly impact your business.

Here are a few examples …

1.
Whether you are an importer, exporter or even a company owner that has assets in other countries, you may be greatly affected by currency variation risks.

2.
Whether you are a local business that pays in CAD for USD commodity-driven prices, you may also be affected by currency fluctuations that are hidden in the prices.

3.
Whether your business is competitive on a global scale.

4.
Whether your business was affected by the volatility of currencies, etc.

A few diagnostic ideas from our experts …

1. Identify the unique nature of market risks using our tailored questionnaire.

2. Understand the company’s history, its challenges and its ambitions.

3. Target suppliers that have an impact on the competition.

4. Assess market risks related to your market (transactions, currency fluctuations, risks with foreign exchange, commodity prices, and foreign competition).

5. Analyse the results while taking into consideration a combination of quantitative and qualitative factors that directly impact your business.

Interest Rate Hedging Risks

Risk management related to interest rates requires an in-depth analysis of your financial structure. Potential impact simulations on your cash flows and your financial ratios shall be determined. Our experts can establish which currencies would be best for you. An exact calculation will determine the suitable debt and ratio for the interest rate.

Interest Rate Hedging Risks

Risk management related to interest rates requires an in-depth analysis of your financial structure. Potential impact simulations on your cash flows and your financial ratios shall be determined. Our experts can establish which currencies would be best for you. An exact calculation will determine the suitable debt and ratio for the interest rate.

In the event your lender demands a clause that requires you to fix a portion of your debt, you should determine if the strategy that it offers is in your best interest.

As we work for you, we offer:

An independent assistance in the implementation.

Pricing in line with the actual market prices.

Reality check at all times.

No hidden fees.

Commodity Risks
(Raw Materials)

Commodity risks exists in the majority of companies. However, too many companies ignore the impact and negative repercussions of these risks related to commodities. Our experts take care to explain the importance of these risks that can be very well managed.

Commodity Risks (Raw Materials)

Commodity risks exists in the majority of companies. However, too many companies ignore the impact and negative repercussions of these risks related to commodities. Our experts take care to explain the importance of these risks that can be very well managed.

Here are a few examples;

Heating

Use natural gas as a power source to heat or in your production process.

Transportation

Fluctuation of fuel prices, even if you do not have your own fleet of trucks.

Product Manufacturing

Purchase of raw materials to manufacture your products (goods), for example, the purchase of grains, metals, etc.

Risk Management

This is something our trained experts can also do for you! Outsourcing of risk management.

Risk Management

This is something our trained experts can also do for you! Outsourcing of risk management.

The Process

The Process

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Stage 1

Structure the organization and its actions.
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Stage 2

Provide an implementation and monitoring framework.
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Stage 3

Face the future by aligning yourself with your goals.
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Stage 4

Support the company’s treasury department.
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Stage 5

Adequately manage financial markets.

Due Diligence

Are you thinking about investing in, participating in or acquiring a company?

Due Diligence

Are you thinking about investing in, participating in or acquiring a company?

Make sure you pay a fair price by taking the time to understand market risk dynamics!

The volatility of financial markets related to currencies, interest rates and raw materials can significantly impact the value of your project.

FINMETRIX works with you to analyze and quantify the impact of market risks as well as the suitability of current hedges set in place, thereby ensuring that the valuation of your transaction reflects ALL of these important factors.