Wise Risk gives you a choice of four hedging strategies, each designed around a different approach to managing currency risk. Whether your priority is predictability, flexibility, or somewhere in between, there's a strategy built for it. All four are fully automated. You set the parameters once, and Wise Risk handles rebalancing whenever your exposure moves outside your target range.
This strategy hedges 90% of your identified currency exposure and automatically re-balances any time you move more than 10% away from that target. It is built for organizations where budget certainty is the top priority: you want to know what your costs are going to be, and exchange rate volatility shouldn't change that.
This strategy works for ongoing cash flow and balance sheet exposures (on a quarterly rolling basis), as well as one-off project or contract risks.
Hedges 75% of your currency risk, with automatic rebalancing when exposure moves outside a 10% range. The remaining 25% stays unhedged, giving your finance team the option to time the market on a portion of your exposure if you have a view on where rates are heading.
This strategy works for cash flow, balance sheet, and event-based risks.
Hedges 50% of your currency risk automatically. The other half remains open, giving you significant market exposure alongside a solid floor of protection. Best tailored to organizations with someone closely monitoring exchange rates.
This strategy also works well for exposures that change frequently, where a lighter hedge gives you more flexibility to adjust.
The Custom Strategy uses Wise Risk's Configuration Tool to let you set your own target hedge percentage, rebalancing range, rolling cycle (monthly, quarterly, or annual), and rate alert thresholds. If you've been managing your FX exposure manually with a specific approach in mind, this is how you put it on autopilot without changing your underlying strategy.
Wise Risk automates exposure tracking, provides real-time analytics, generates accurate forecasting, and executes pre-defined hedging strategies. It eliminates manual processes and gives CFOs and treasury teams full visibility into their currency risk.
The platform can track transactional, translational, and economic exposures, including invoices, purchase orders, contracts, intercompany balances, and forecasted cash flows.
Yes. Automated hedging follows predefined rules set by your finance team. Wise Risk ensures every trade aligns with your risk policy, reducing manual errors and ensuring consistent execution.
Yes. Wise Risk integrates with ERPs, accounting systems, treasury software, and banking platforms to streamline data flows and ensure accurate exposure analysis.
Wise Risk provides tailored risk assessments and recommends strategies such as balanced, opportunity-focused, or fully custom hedging. All based on your company's goals, industry, and risk tolerance.
Before you compare products or providers, you need to decide how much exchange rate uncertainty your business is willing to live with. For example, Wise Risk provides three pre-built strategies, ranging from fully protected from, to intentionally exposed to market volatility.
A company invests half a million US Dollars in a Yen-denominated position. A year later, the investment is up 12%, and the finance team is pleased. But, when they convert back to Dollars, the gain has vanished. The asset performed. The currency exchange rate undid its gains.
Most clients come to us knowing they have currency risk but unsure how to manage it. We can help you work through the options and find the right fit.