Design a Currency Hedging Policy for GlowAustin's EU and Japan Revenue
Overview
What this challenge is about.
Quantify net FX exposure, compare forwards vs options, and recommend a hedging ratio for GlowAustin. Earn a verifiable certificate.
The scenario
GlowAustin is a small, venture-backed direct-to-consumer skincare brand headquartered in Austin, Texas, with roughly 40 employees and most sales in the United States. Cross-border e-commerce demand in the European Union and Japan has turned a single-currency business into a multi-currency one almost overnight, and the finance team has no formal hedging policy in place.
The Brief
What you'll do, and what you'll demonstrate.
How should GlowAustin hedge its growing euro and yen revenue exposure to protect profit margins from adverse exchange-rate movements without exceeding a 2%-of-revenue cost budget?
Earning criteria — what you'll demonstrate
- Quantify net transactional foreign-exchange exposure from revenue and cost data
- Compare hedging instruments by cost, flexibility, and accounting treatment
- Translate a firm's risk appetite and cash-flow constraints into a defensible hedging ratio
- Communicate a financial risk policy clearly to a non-technical board audience
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Aligned coursework coming soon.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
- Fx Risk Management
Apply fx risk management to solve real industry problems and demonstrate production-level capability.
- Financial Analysis
Apply financial analysis to solve real industry problems and demonstrate production-level capability.
- Derivatives
Apply derivatives to solve real industry problems and demonstrate production-level capability.
- Excel Modeling
Apply excel modeling to solve real industry problems and demonstrate production-level capability.
- Risk Assessment
Apply risk assessment to solve real industry problems and demonstrate production-level capability.
Careers
Career paths this challenge builds toward
Completing this challenge demonstrates skills that transfer directly to these roles:
Treasury Analyst
This challenge mirrors core treasury work: measuring currency exposure, pricing hedges against a cost budget, and drafting a policy for approval. It builds the exposure-quantification and instrument-selection judgment treasury teams rely on every reporting cycle.
This challenge sharpens
- fx-risk-management
- derivatives
- risk-assessment
Corporate FP&A Analyst
Forecasting margin impact from currency moves and modeling cost trade-offs are everyday FP&A tasks. The exposure model and scenario work here translate directly into planning, variance analysis, and management reporting roles.
This challenge sharpens
- financial-analysis
- excel-modeling
- fx-risk-management
Risk Management Associate
Defining risk appetite, sizing positions, and documenting governance rules are central to financial risk roles. This brief develops the structured judgment needed to recommend and defend a risk policy to senior stakeholders.
This challenge sharpens
- risk-assessment
- financial-analysis
- derivatives