Foreign Exchange Case Study

Foreign Exchange Case Study

Rochford worked with a rapidly growing retailer with COGS denominated in Dollars, Sterling and Euros. They had no official or documented treasury risk management policy in place and their decision making was often ad-hoc or ‘knee jerk’ reactions to the market.

Rochford was engaged to:

  • Construct a hedging policy aligned to the company’s buying cycle
  • Create a process of weekly exposure reporting of a FX risk management committee consisting of the CFO, Head of Buying and Rochford
  • Hold short, weekly meetings to discuss risk management on-going
  • Provide monthly policy compliance board reporting

Outcomes:

  • The company’s budgets and cash flow was protected from a depreciating AUD, and the impact of currency volatility reduced over time
  • Having an external advisor allowed key staff to focus on strategic objectives
  • and time for value enhancing investments/achievement of strategic objectives, including new product lines and new store roll outs/acquisition