Corporate Finance Explained | Building an FX Hedging Program

How do global companies protect their profits when exchange rates move against them?

In this episode of Corporate Finance Explained, we break down foreign exchange (FX) risk and how multinational companies manage currency exposure before it disrupts cash flow, earnings, and long-term competitiveness. Using real-world examples from Coca-Cola, Airbus, and Procter & Gamble, we explore how corporate treasury teams turn unpredictable currency movements into a more manageable financial risk.

You'll learn the difference between transaction, translation, and economic exposure, and why each requires a different approach to risk management. We also explore how companies use centralized treasury functions, natural hedges, forward contracts, and layered hedging strategies to reduce volatility without turning treasury into a speculative trading operation.