Corporate Finance Explained | Building an FX Hedging Program

What happens when a company delivers a strong quarter, only to have currency movements erase millions of dollars in earnings? In this episode of Corporate Finance Explained, we break down how multinational companies manage foreign exchange (FX) risk and protect their cash flows, earnings, and long-term competitiveness from currency volatility. Foreign exchange risk goes far beyond converting one currency into another. Companies need to understand where their exposure comes from, determine which risks can actually be hedged, and build a disciplined treasury strategy around the risks they cannot eliminate.