BUSINESSES USE TECH TO MANAGE CURRENCY RISK
30-Aug-2017 11:45 AM
Only half of Australian businesses are effectively managing foreign exchange exposure
Sydney, 30 August 2017: More than half of Australian businesses (55 per cent) are not effectively managing their foreign exchange exposure making themselves more vulnerable to even the smallest currency fluctuations.
This is according to the American Express Payment Revolution report which includes the views of 355 Chief Financial Officers (CFOs) from businesses across Australia in 15 key industries covering construction, manufacturing, wholesale and retail trade, and professional services.
According to the research, only a third of CFOs said they have updated their currency risk strategies in the past three years and 10 per cent admit they have no plans in place at all. More than half had experienced financial loss during periods of FX volatility, with the average cost of each adverse event estimated to be more than AUD$23,500.
Barry Fletcher, Vice President and General Manager, International Payments, American Express said: “Currency risk can have a significant effect on a business’ bottom-line, and many business owners aren’t aware or aren’t focusing on the problem. With more businesses and smaller businesses working with partners overseas, companies should be looking for new ways to improve their internal processes associated with foreign trade payments.”
The report also revealed many Australian businesses were turning to new technology to help deal with currency risk. The Payment Revolution study found:
Thirty-five (35) per cent of businesses involved in cross-border trade identified increased payment innovation as a key strategic business priority.
Globally-focused businesses were more likely to have invested in new payment technologies, including 35 per cent that spent more than $100,000 on the development of new systems last year.
The three biggest payment needs were greater business efficiency (41 per cent), better integration with cash flow management (41 per cent) and a reduction in complexity through frictionless payments (40 per cent).
To download a copy of the Payment Revolution whitepaper visit: https://auforex.americanexpress.com/download-payment-revolution-foreign-exchange?&extlink=onl_med_org
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About the Payment Revolution Research
This research was commissioned by American Express and undertaken by RFi Group with Chief Financial Officers in mid-sized businesses in Australia with annual revenue values between $2 million and $300 million. The findings contained in this Special Report reflect the views of 355 Chief Financial Officers (CFOs) in Australia. Respondents included organisations from more than 15 key industries, including construction, manufacturing, wholesale and retail trade, and professional services.
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more at americanexpress.com and connect with us on facebook.com/americanexpress, instagram.com/americanexpress, linkedin.com/company/american-express, twitter.com/americanexpress, and youtube.com/americanexpress