Dell's Exposure Management Strategy

Dell's Exposure Management Strategy

Exposure Management Policy

There are usually four steps involved in exposure strategy used by management:

Forecasting the degree of exposure in each major currency in which the Multinational Company operates.

A monitoring system is developed to monitor the level of exposure and fluctuations in the exchange rate that provides the guard against the risk.

Assigning responsibilities for hedging exposure and deciding whether to centralize or decentralize the exposure management.

Most appropriate hedging tool is selected that includes diversity of Multinational Company's operations such as exposure netting and balance sheet hedge.

Dell Exposure Management Strategy in Brazil

The use of ...