In our newest interview, Atlas Risk Advisory Inc. CFO and co-founder Scott Bilter tells NeuGroup CEO Joseph Neu how AtlasFX allows risk managers to see a combined, full picture of their FX and commodity exposures and hedges.
In this video, NeuGroup founder and CEO Joseph Neu interviews AtlasFX’s Scott Bilter, co-founder and CFO to discuss data analytics that help treasury, FP&A, and accounting teams optimize balance sheet and cash flow hedging programs.
Discussion of some of the most common challenges and pitfalls of forecasting a company’s balance sheet exposure, how this is impacted by the company’s accounting rate methodology, as well as the pros and cons of different approaches.
Discussion of all the sources of monthly balance sheet hedging results variance, breaking down the details of the difference between the balance sheet hedging gains/losses and the remeasurement losses/gains the hedges are meant to offset.
Discussion on how corporates can dig deeper into their FX trading transaction costs, allowing them to quantify what their banking partners are making on their trades, breaking down the arrival-to-execution drift, bid-ask spread, and skewness details.
Discussion of the sources of variance in a cash flow hedging program, building a bridge back to the relevant company plans that drive business metrics, and identifying the volume and rate drivers that are the sources of variance to these plans.
Discussion on how to extract and validate the relevant FX data from your ERP system(s), as well as how to identify and fix common issues such as ghost balances and analyzing the relevant weighted average rates in a daily accounting rate environment.