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Case Studies

UK - International Charitable Organisation

Foreign Exchange Review

The work of the charity is spread across one hundred and ten countries worldwide generating flows of funds in more than forty currencies. The charity has to meet local currency expenses in all of the countries in which it operates and with a large annual requirement for US dollars and a base currency of GBP, it was exposed to the risk of market and economic volatility in a large number of currency pairs.

The trustees identified foreign exchange risk as one of the organisation's top ten risks.

Solution: Lillie Associates was employed by the charity to carry out a review of its current foreign exchange dealings including systems, processes and policies and recommend:

  • Options to mitigate any exposure to foreign exchange risk
  • Ways to optimise on its trading options
  • Implementation of treasury best practice within a well-defined foreign exchange strategy and policy.

All key treasury and associated personnel were interviewed during the course of the review process and Lillie Associates delivered:

  • An FX report that identified the major areas of risk and provided a series of recommendations on risk management, organisational and procedural efficiency and the optimum use of technology.
  • An FX hedging policy for ramification by the trustees
  • An implementation plan designed to deliver the recommendations with priority placed accordingly on the most important issues and opportunities for immediate gains