Whitewater Analytics Launches New FX Management Solution for Corporate Treasury Risk Managers

23 August 2011

Whitewater Analytics, a new technology provider founded by corporate treasury professionals, has announced the launch of a new pre-trade foreign currency exposure reporting solution. Corporate treasury foreign exchange risk managers often cite one of the biggest challenges related to currency risk management is collecting timely, reliable forecasts from business units. Common hurdles include multiple accounting systems as well as time-consuming and error-prone consolidation of emails and spreadsheets. By leveraging WHITEWATER ANALYTICS' technology, risk managers have more time and quality information to thoroughly evaluate and investigate foreign currency exposures, helping lead them to better hedging decisions.

The Whitewater Analytics solution is delivered as a subscription-based software-as-a-service (SaaS) model, so it can easily be scaled to serve companies of any size, from mid-market companies wishing to begin evaluating exposures to companies with hundreds of remote subsidiaries. Remote business unit users enter currency transactions online. Corporate treasury users access a real-time, secure web-based dashboard that allows them to easily navigate from high-level, consolidated currency exposures down to the original report entered by the business unit user.

In today's world of pressured profit margins and a volatile global economy, mitigating foreign currency risk is more important than ever. Companies who do not monitor or hedge their currency exposures are under pressure to measure their currency sensitivity so they can explain company impact and make effective hedging decisions. Kim Chase, Managing Partner of WHITEWATER ANALYTICS and corporate treasury practitioner, says that many companies, even those with sophisticated hedging programs, still use spreadsheets and email to manually collect and consolidate business unit exposure forecasts. “Our aim is to deliver a practical, easy-to-use tool that delivers value and a positive return on investment right away—without months of implementation,” said Chase. “As corporate treasury practitioners who have personally managed currency exposures using manual spreadsheets and email,” said Chase, “we know how to make technology work for our clients.”

“Whitewater is exactly the solution that we were looking for,” said the Assistant Treasurer at one of WHITEWATER ANALYTICS’ clients. “As a $1.4 billion global company doing business in 30 countries, we have FX exposures all over the place. Whitewater is an easy-to-use, easy-to-implement FX exposure consolidation tool that did not require the IT resources that other tools do.”

The financial opportunity lost by not hedging foreign currencies, or by not effectively hedging, can be significant for a multinational corporation. Consider a German subsidiary that sells $2 million in products per month to U.S. customers. Over the past 12 months, the EUR value of those U.S. dollar sales would have ranged 20%, anywhere from 1.3 million euros to 1.6 million euros.

“As companies expand and acquire subsidiaries, this core treasury process becomes even more critical to success, and even harder to manage,” said Chase. “We are proud to introduce this solution that will allow companies new to hedging or those looking for a better way, a best practice solution out of the box.”

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