Stating the obvious for the people in finance

A research report commissioned by UK broker Moneycorp shows, depressingly, that when it comes to managing FX exposure, many company finance directors are clueless. The research, carried out by Vanson Bourne, canvassed 500 bosses. As well as highlighting a lack of confidence in sterling, more worryingly it found that, “those responsible for managing overseas trading within businesses appear to have insufficient knowledge of how currency fluctuations can affect profits. A third (30%) of finance directors acknowledged that a lack of understanding of currency risk had had a negative impact on the bottom line, and over a quarter (26%) of those were large businesses, trading an average of £2.7 million a year.”