Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/129638
Authors: 
Jankensgård, Håkan
Alviniussen, Alf
Oxelheim, Lars
Year of Publication: 
2015
Series/Report no.: 
IFN Working Paper 1078
Abstract: 
In this paper we challenge the role of Foreign Exchange Risk Management (FXRM) in corporate management. We believe it is fair to characterize FXRM, on the whole, as a legacy activity rather than something that reflects a realistic cost-benefit analysis at the enterpriselevel. The Board of Directors, as the designated guardians of the interests of shareholders, has a key role in setting the firm on a path towards a cost-efficient and centralized FXRM that preserves the firm's transparency and predictability towards the investor community. A policy conclusion from our analysis is that responsibility for FX policy should shift from the traditional Finance/Treasury orientation to a group risk function (e.g. a Chief Risk Officer) supported by a risk committee dedicated to integrated risk management.
Subjects: 
Foreign exchange
risk management
transparency
risk committee
integrated risk management
JEL: 
G30
G32
Document Type: 
Working Paper

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