HEDGING FOREIGN EXCHANGE RISKS ... - Clariden Global · The Clariden Experience Why Clariden Global...

C L A R I D E N Singapore | Sydney | Melbourne | Dubai | Hong Kong |

London | New York | San Francisco | Toronto | Auckland

HEDGING FOREIGN EXCHANGE RISKS: EFFECTIVE HEDGING TECHNIQUES, INSTRUMENTS AND STRATEGIES

July 20 - 21

UNITED KINGDOMHilton London Bankside

2017

CLARIDEN GLOBAL FINANCE INSTITUTE

CLARIDEN CREDENTIALS AND ENGAGEMENTClariden Global is the pre-eminent and infl uential global business leadership institution. Today, we host

more than 200 global executive education and major conference events around the world. We have partnered

with professional organizations such as the Association of Chartered Certifi ed Accounts (ACCA) and thought

leaders from prestigious universities such as Harvard University John F. Kennedy School of Government,

Wharton School of the University of Pennsylvania and Stanford University.

The Clariden Experience

Why Clariden Global Executive Education?

Hedging Foreign Exchange Risks: Effective Hedging Techniques,

Instruments and Strategies

5 Program Introduction

7 Faculty Director

8 Program Overview

9 Program Outline

Participating Companies

Testimonials

In-house Custom Executive Programs

Contact Us

Registration

4

5

11

12

13

14

15

CONTENTS

3

To maximize both your enjoyment and professional development, Clariden Global holds its executive

programs at fi ve star hotels, some of which include:

Shangri-La Hotel, SingaporeSingapore

Conrad London St JamesLondon, United Kingdom

InterContinental Melbourne The RialtoMelbourne, Australia

Grand Hyatt: Union Square San Francisco HotelSan Francisco, United States

Amidst lush gardens, this 3-wing luxury hotel is 6

km from the iconic Marina Bay Sands resort and

9 km from Sentosa.

Across the street from St. James’s Park tube

station, this sophisticated hotel is 10 minutes’

walk from Buckingham Palace and 2 miles from

the Victoria and Albert Museum.

Set in a grand 1891 building, this upscale chain

hotel is 3 blocks from the Yarra River, and an

8-minute walk from the SEA LIFE Melbourne

Aquarium.

Less than a block from Union Square, this stylish

high-rise hotel is an 11-minute walk from the

Moscone Center and 1.9 miles from Pier 39.

Contact Karen Woods, Program Director at +44 (0) 20 7129 1222 | [email protected]

Terms & Conditions: Clariden Global International Limited reserves the right to change the

venue of the program due to reasons beyond their control.

THE CLARIDEN EXPERIENCEENJOY LEARNING WITH THE

FIRST-CLASS, WELL-ROUNDED EXPERIENCE

3

WHY CLARIDEN GLOBAL EXECUTIVE EDUCATION?

5,000+Companies

15+Countries

10,000+Participants

50+Industries

GLOBAL ENGAGEMENT Clariden Global is the pre-eminent and infl uential global business leadership institution. Today, we host

more than 200 Global Executive Education and major conference events across 15 countries and 17 cities,

including Singapore, London, Hong Kong, Sydney, Melbourne, Perth, New Zealand, San Francisco, Toronto,

Johannesburg, Shanghai, Beijing, Kuala Lumpur, Dubai, Toronto, The Netherlands, New York and Zurich.

INTERNATIONALLY DIVERSE, SENIOR-LEVEL PARTICIPANTSClariden Global Executive Education programs have attracted participants from more than 5,000 global

MNCs, regional corporations, and FORTUNE 500 companies, from more than 40 countries. All applications

are reviewed based on professional achievement and organizational responsibility. Designed for individuals

at all levels, from top executives to emerging leaders, each intensive program is crafted to equip leaders

with essential capabilities to improve corporate performance and position their organizations to thrive.

THOUGHT LEADERSHIPTo provide strategic insights and relevant world-class executive education to global organizations, Clariden

Global engages the best thought leaders and leading authorities from around the world. These include

professors and faculty leaders from Harvard University, Stanford University, University of Pennsylvania

Wharton, London Business School and other premium institutions to deliver transformational knowledge.

Contact Karen Woods, Program Director at +44 (0) 20 7129 1222 | [email protected] 4


FACULTY DIRECTOR

PROGRAM ESSENCE

• Leading authority in foreign exchange risks management with more than 15 years of experience managing foreign exchange risks and has coached over 5000 finance professionals globally

• Former Head of FX Trading and Proprietary Risk at Tokai Bank Europe where he was based in London and Europe, running portfolios in excess of $2 billion and worked closely with

regulatory authorities in 6 European countries

• Clients consulted include National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar

Eugene O’Connell

Designed for CFOs, treasurers and corporate finance professionals, this comprehensive 2-day program is designed to provide you with effective techniques and proven strategies to effectively manage and measure foreign exchange risks to protect your company’s profitability against uncertainties.

Led by Eugene O’Connell, former Head of FX Trading and Proprietary Risk and leading authority who has consulted major companies including National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar, this program will provide you with strategic perspectives and in-depth understanding of hedging principles, hedging instruments and practical tools available to reduce your foreign currency exposure.

DATES20 - 21 July 2017

LOCATIONHilton London Bankside

TUITION FEESEarly Bird 1 (Register & pay by 25 May 2017): £1,795

Early Bird 2 (Register & pay by 22 June 2017): £1,895

Regular Tuition Fee: £1,995

Group discount of 10% for 2nd participant from the same organization. For limited time only by

22 June 2017 register 3 participants and the 4th participant will receive a complimentary seat (One

discount scheme applies).

PROGRAM ADVISORKaren WoodsEmail: [email protected]

Phone: +44 (0) 20 7129 1222

PROGRAM INFORMATION

PROGRAMHEDGING FOREIGN EXCHANGE RISKS:

EFFECTIVE HEDGING TECHNIQUES,

INSTRUMENTS AND STRATEGIES


By the end of this program, participants will be able to:

• Gain clear, in-depth understanding of the different types of foreign exchange risks

• Utilize effective strategies to address transaction, economic and translation risks

• Master effective hedging techniques to accurately measure, respond and mitigate risks

• Understand the advantages and limitations of each hedging instrument

• Derive an effective risk management framework

• Implement reliable risk response and mitigation strategies to proactively safeguard against foreign exchange risks

• Learn industry best practices in hedging against foreign exchange risks

This program is designed for, but not limited to, CFOs, Finance Directors, Financial Controllers, Corporate Treasurers,

Risk Analysts, Traders, Risk Managers, Finance Managers, Treasury Managers, Accountants, Auditors, as well as

all professionals who are involved in managing foreign exchange risks.

KEY BENEFITS

WHO WILL ATTEND THIS PROGRAM

Utilizing the latest hedging techniques and instruments available from options, forward, swaps, and futures, this program will teach you how to use the right derivative instrument to master effective hedging techniques, tools and strategies and gain deep understanding of the advantages and limitations of each hedging instrument. In addition, you will learn to design an effective risk management framework for successful implementation and execution of your organization’s risk mitigation strategies to create a match between hedges and foreign exchange risks.

Packed with real-life case studies and industry best practices, you will gain practical skills, proven techniques and in-depth knowledge in managing and measuring foreign exchange risks to protect your company against FX volatility.





Financial Institutions Coaching Practice

Eugene is a leading authority in foreign exchange risks management with more than 15 years of experience managing foreign exchange risks and has coached over 5,000 finance professionals globally.

Prior to coaching, Eugene served at middle and senior management levels of many international banks for more than 15 years. He ran proprietary portfolios in Fixed Income, Foreign Exchange, swaps and other derivative instruments. He sat on Risk Management committees in both London and Tokyo before becoming a learning and development professional. He now uses his extensive experience to deliver highly effective finance and leadership coaching to a wide range of businesses.

Some of his clients include national and international companies such as National Savings & Investment UK, Paribas, UBS, Bank of America ML, Jaguar Land Rover, Bank of China, UK Civil Service and Qatar and many more.

Throughout his working years, Eugene has dedicated his time to training, coaching, and mentoring leaders. Employing many techniques of his profession where appropriate, he actively listens to his clients and helps them find the path which best helps them attain the organizational and personal goals they need to achieve.

FACULTY DIRECTOR




Eugene O’Connell


Volatilities in the foreign exchange markets have increased asfinancial markets grapple with unexpected political and economicdevelopments globally. It is vital for CFOs, treasurers and financemanagers to know how to effectively manage foreign exchange risksand executive appropriate risk management strategies to sustaingrowth and profitability. However, most companies are still facing difficulties in utilizing effective hedging techniques, instrumentsand strategies to protect their organization from foreign exchangerisks.

The problem here is that many companies face difficulties inunderstanding and addressing transaction, economic and translationrisks. In addition, they are ineffective in deriving a strategic riskmanagement framework to effectively measure, respond and mitigateforeign exchange risks. Many also highlighted the poor hedgingstrategies and utilization of hedging instruments.

Without in-depth knowledge, effective frameworks and techniquesto critically analyze, measure and strategize an effective foreignexchange risk management plan, companies may face increasedforeign exchange risks, overpaying, poor foresight and lost ofinvestment and business profits.

Designed for CFOs, treasurers and corporate finance professionals, this comprehensive 2-day program is designed to provide you witheffective techniques and powerful strategies to effectively manageforeign exchange risks and improve your organization’s profitability.

Led by Eugene O’Connell, former Head of FX Trading and Proprietary Risk and leading authority who has consulted major companiesincluding National Savings & Investment UK, Paribas, UBS, Bank ofAmerica ML, Jaguar Land Rover, Bank of China, UK Civil Service andQatar, this program will provide you with strategic perspectives and in-depth understanding of different types of foreign exchange risksinvolved such as transaction, economic and translation risks, and how to effectively identify, assess and manage them. In addition, youwill learn to master effective hedging techniques, instruments andstrategies to accurately measure, respond and mitigate according to the type of foreign exchange risks involved respectively and gain clearunderstanding of the advantages and limitations of each hedginginstrument so as to utilize them more effectively. Furthermore, you will learn to derive an effective risk management framework forsuccessful implementation and execution of your risk mitigationstrategies, as well as industry best practices to effectively hedgeagainst foreign exchange risks.

Packed with real-life case studies and interactive discussion sessions, you will leave this program with practical skills, powerful techniques and in-depth knowledge to safeguard your organizationfrom foreign exchange risks and drive better profitability and businesssustainability.

OVERVIEW

PROGRAM OVERVIEWHEDGING FOREIGN EXCHANGE RISKS:



This course has been

independently certifi ed as

conforming to accepted CPD

guidelines. On average, this

executive program contributes

16 hours towards your CPD. Delegates must

register at the start and close of each workshop

to be awarded a certifi cate of completion.

CPD CERTIFICATION DETAILS

1. Types of foreign exchange risk

DAY 1


09:00 - 17:00 / 20 July 2017

PROGRAM OUTLINEHEDGING FOREIGN EXCHANGE RISKS:



1.1 Transaction risk • The size of the transaction, is it material?• The hedge period, the time period before the expected cash flow occurs• Can we anticipate the volatility of the exchange rates during the hedge period?

1.2 Economic risk• Directly: If your firm’s home currency strengthens then foreign competitors are able to gain sales at your

expense because your products have become more expensive• Indirectly: Even if your home currency does not move with respect to your customer’s currency you may

still lose a competitive position

1.3 Translation riskThe issues are discussed with case studies:• It is the translation not the conversion of real money from one currency to another• Severe distortion of reported performance of overseas subsidiaries when there has been a significant

foreign exchange movement• Should companies hedge translation exposure?

2. Hedging transaction risk - the internal techniques

2.1 Invoice in home currency • Internal techniques to manage/reduce forex exposure • Paying for all imports in your home currency• Who owns the exchange-rate risk? • Viability for companies in monopoly positions vs. those in a competitive environment

2.2 Leading and Lagging - basic hedging• Why importers delay payment• Appropriate means of delaying payment and consequences• How to obtain payment immediately without conflict?• The problem lies in guessing which way the exchange rate will move.

2.3 Matching• Matching up receipts and payments in the same foreign currency due at the same time• Dealing with the unmatched portion of the total transactions.• Setting up foreign currency bank accounts.• Bilateral and multilateral netting and matching tools Case study: Comparing Tabular and diagrammatical netting methods

2.4 Letting the market decide• Is the result “win some, lose some”?• Do gains and losses net off to leave a similar result to that if hedged?• Transaction cost savings vs. short-term risk


3. Hedging transaction risk - the external techniques

DAY 2

09:00 - 17:00 / 21 July 2017

3.1 Forward contracts • How forward contracts work• How forward prices should be agreed upon• Understanding spot-forward parity• Relationship between the forward price and expected future spot price

3.2 Money market hedges• Locking in currency value in advance of a transaction• Creating certainty about how much a future transaction will cost • Ensuring the domestic company can lock in a price that it is willing and able to payCase study: Setting up a hedge from scratch

3.3 Futures contracts• How futures contracts work• Who can or should use them• What is basis risk?• Should you ignore or hedge this?Case study: How corporates use Futures to hedge existing exposures

3.4 Options• What are traded currency options?• What is the terminology and what does it mean?• When do you allow an option to either lapse or call?• Why use options rather than forward contracts or futures I the result is an asymmetric risk exposure?Illustration: A typical pricing schedule for the US$/€ currency option on the Philadelphia exchange

3.5 Forex swaps• Access to capital markets, in which it may be impossible to borrow directly• The FX swap market and how swap rates are calculated• Why banks use forward swaps rather than outright forwards: hedging outright forward transactions• Understanding the sensitivity of FX swaps to changes in rates• “Historic rate” rollovers explainedCase study: Using FX swaps to facilitate an international construction project

3.6 Currency swaps• Purposes of Currency Swaps• Issues concerning exchange of principal in different currencies• The exchange of interest rates - the timing of these depends on the individual contract• Fixed for fixed or fixed for variableCase study: Using currency swaps in conjunction with underlying bond exposures

PROGRAM OUTLINEHEDGING FOREIGN EXCHANGE RISKS:



PARTICIPATING COMPANIESMore than 5,000 companies have participated in our programs

ADVERTISING, INTERNET, MEDIA,PUBLISHINGBBC Worldwide

CNN

eBay

LinkedIn

MediaCorp

Saatchi & Saatchi

Singapore Press Holdings

The Financial Times

The Hoffman Agency

The Walt Disney Company

Thomson Reuters

CONGLOMERATEFraser & Neave

General Electric

General Motors

Mitsubishi

Monsanto

Siemens AG

Sodexo

FINANCIAL SERVICES, INSURANCEBank of America Merrill Lynch

AIA

Allianz Global Investors

American Express

Aviva

AXA

Barclays Bank

Citibank

DBS Bank

Deutsche Bank

HSBC

JP Morgan Chase Bank

Manulife

MasterCard

Maybank

Mizuho Bank

OCBC Bank

PayPal

Prudential

Rabobank

Standard Chartered Bank

Suncorp

Swiss Reinsurance

TD Securities

Visa

Westpac

Zurich Insurance

FOOD, BEVERAGECoca-Cola Beverages

Danone

Ferrero

Heineken

McDonald

PepsiCo


GOVERNMENT, NONPROFITAustralian Securities and Investments

Commission

Central Provident Fund Board

Changi Airport Group

Economic Development Board

GIC

NSW Treasury

Serco

Temasek Group

HEALTHCARE, PHARMACEUTICALSAbbott Laboratories

Eu Yan Sang

Glaxosmithkline

Hoffmann-La Roche

Johnson & Johnson

Merck

Pfi zer

Sanofi

HOSPITALITYCapitaLand

Far East Organization

Frasers Hospitality

Hilton Worldwide

Marriott Hotels

Pan Pacifi c Hotels Group

Shangri-La Hotels & Resorts

MANUFACTURING (CONSUMER)British American Tobacco

Estee Lauder

Fonterra Brands

Heineken

Kimberly-Clark

Kraft Foods

Lego

Mars Foods

Nestlé

Procter & Gamble

Unilever

MANUFACTURING (INDUSTRIAL)Airbus

Corning Optical Communications

Daimler

Harley Davidson

Intel Semiconductor

Rolls-Royce

Volvo Group

Wearnes Automotive

OIL & GAS, NATURAL RESOURCESCaltex

Chevron

ConocoPhillips

ExxonMobil

Maersk

Petronas

Santos

Saudi Arabian Oil

Schlumberger

Shell

PROFESSIONAL SERVICESAECOM

Aon Hewitt

Ernst & Young

PricewaterhouseCoopers

RETAIL, TRADEAdidas

Cargill

DFS

Harvey Norman

Hennes & Mauritz

IKEA

L’Oreal

Marks and Spencer

NTUC Fairprice

Tesco

TECHNOLOGY, ELECTRONICS3M

Apple

Canon

Dell

Hewlett Packard

Intel Technology

Lenovo

Micron Technology

Microsoft

Oracle

SAP

Sony Electronics

TE Connectivity

TELECOMMUNICATIONSEricsson

Nokia

Olive Communications

Singtel

Starhub

Tata Communications

Telstra

Verizon

Vodafone

TRANSPORTATIONAuckland Transport

Cathay Pacifi c Airways

Dubai Air Navigation Services

New Zealand Transport Agency

Fiji Airways

Metro Trains Melbourne

NSW Trains

SBS Transit


CLARIDEN GLOBAL’S TESTIMONIALS

Great, condensed

overview in two days

enabling me to have a

broad understanding of

key topics and theories

and a repository to go

back to if more details

are needed. Great

facilitator!

This was an excellent

session. Very informative

and a very knowledgeable

presenter. Really good and

would like to see what other

courses are available.

Commercial and Finance Officer, TDSi2

Finance Director,TE Connectivity Germany GmbH

“

“ ““

PROGRAM ADVISORKaren WoodsEmail: [email protected]

Phone: +44 (0) 20 7129 1222

Eugene is a leading authority in foreign exchange risks management with more than 15 years of experience managing foreign exchange risks and has coached over 5,000 finance professionals globally.

Prior to coaching, Eugene served at middle and senior management levels of many international banks for more than 15 years. He ran proprietary portfolios in Fixed Income, Foreign Exchange, swaps and other derivative instruments. He sat on Risk Management committees in both London and Tokyo before becoming a learning and development professional. He now uses his extensive experience to deliver highly effective finance and leadership coaching to a wide range of businesses.

CONTACT US


IN-HOUSE

CUSTOM

EXECUTIVE

PROGRAMS

Clariden Global delivers custom learning programs for organizations all around the world. Whatever your business

challenges are, we create focused learning experience that enables your organization to achieve success. Through

partnerships with the most renowned thought leaders, industry experts and professors from around the world,

these in-house custom executive programs will equip you with essential skills and capabilities to develop and

implement strategies more effectively at your organization.

Engage with our thought leader today:

Financial Institutions Coaching Practice

Eugene O’Connell

CONTACT US


We encourage you to learn more about Clariden Global Executive Education custom and open-enrollment programs.

Our staff will be happy to answer your questions and help you determine the programs work best for you and your

organization.

ENQUIRY FOR THIS PROGRAMKaren WoodsEmail: [email protected]

Phone: +44 (0) 20 7129 1222

SINGAPOREEmail: [email protected]

Phone: +65 6899 5030

Fax: +65 6567 4328

Address: Clariden Global Pte Ltd

3 International Business Park #04-29

Nordic European Centre Singapore 609927

LONDONEmail: [email protected]

Phone: +44 (0) 20 7129 1222

Fax: +44 (0) 84 3218 0413

Address: 1 King Street London,

EC2V 8AU United Kingdom

AUSTRALIAEmail: [email protected]

Phone: +61 3 9909 7310

Fax: +61 3 9909 7788

Address: Clariden Global Pty Ltd

530 Little Collins Street, Level 1

Melbourne VIC 3000, Australia

CUSTOMIZED PROGRAMSKaren WoodsEmail: [email protected]

Phone: +44 (0) 20 7129 1222

REGISTRATION & PAYMENT MATTERSEmail: [email protected]

Phone: +44 (0) 20 7129 1222

REGISTRATION

(20 - 21 July 2017)Hedging Foreign Exchange Risks: Effective Hedging

Techniques, Instruments and Strategies£1,795 £1,895 £1,995

PROGRAM FEES

C L A R I D E N

Program1st Early Bird Fee

(If payment & registrations are received

by 25 May 2017)

2nd Early Bird Fee(If payment &

registrations are received by 22 June 2017)

Regular Fee Per Participant

Hilton London Bankside

20 - 21 July 2017

2-8 Great Suffolk Street

London SE1 0UG United Kingdom

Tel: +44 20 3667 5600

http://www3.hilton.com/en/hotels/united-kingdom/hilton-london-

bankside-LONSBHI/index.html

Email: [email protected]

Fax: +44 (0) 84 3218 0413

Call: +44 (0) 20 7129 1222

Website: www.claridenglobal.com

By Cheque/ Bank Draft

By Telegraphic Transfer

By Credit Card

Group discount of 10% for the 2nd participant from the same organization.

For limited time only by 22 June 2017 register 3 participants and the 4th

participant will receive a complimentary seat.

*One discount scheme applies.

An invoice and registration confi rmation will be sent within 7 days, please

contact us if you have not heard from us within 7 days. Payment details will

be sent together with the invoice based on your preferred payment method.

ALL PAYMENTS MUST BE RECEIVED IN ADVANCE OF THE EVENT.

Accommodation is not included in the program fee but you will be entitled

to use our corporate rate for your accommodation. Information will be sent

along with your registration confi rmation.

Once we have received your booking, the place(s) are confi rmed. No refunds

will be made for any cancellations, however, program credits of equivalent

value only applicable for Clariden Global events will be provided. Credits

can only be redeemed for 1 program and is valid for only one (1) year from

date of issue.

Substitution with a qualifi ed candidate is allowed by providing at least 5

working days of advance notice to Clariden Global. One time substitution

is allowed with no charges. Subsequent substitutions will be charged 10%

admin fee.

PLEASE NOTE: Clariden Global International Limited reserves the right to

change the content and timing of the programme, the speakers and the date

and venue due to reasons beyond their control. If in the unlikely event that

the course is cancelled, Clariden Global International Limited will refund

the full amount and disclaim any further liability.

PRIVATE DISCLOSURE STATEMENT: Any information provided by you in

relation to this event is being collected by Clariden Global International

Limited and will be held in the strictest confi dence. It will be added to our

database for the primary purpose of providing you with information about

future events and services.FEE RECEIVED REFERENCE L7119/BL/KC

4 WAYS TO REGISTER 3 PAYMENT METHODS

VENUE AND ACCOMMODATION INFORMATION

CANCELLATIONS AND SUBSTITUTIONS*All cancellations must be received in written form.

GROUP DISCOUNTS

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HEDGING FOREIGN EXCHANGE RISKS ... - Clariden Global · The Clariden Experience Why Clariden Global...

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