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For most corporate treasury teams, financial risk management priorities consist of protecting the financial statements from volatility in currency values and interest rates. Hedging commodity risk often falls farther down treasury's to-do list. But commodity costs can move suddenly and dramatically. If treasury's risk analyses don't include scenarios with wild swings in commodity prices, the company may be caught out by unnoticed exposures.
In a complex and interconnected world, risks are everywhere. Companies that fail to effectively mitigate the highest-impact risks may find they wreak havoc on financial projections, budgets, and the company’s ability to meet stakeholder expectations.
As a journalist, you can create a free Muck Rack account to customize your profile, list your contact preferences, and upload a portfolio of your best work.