Currency risk doesn’t just affect profits — it puts your mission at risk. Learn how strategic FX hedge management protects both margin and purpose.
Foreign exchange risk is often deprioritized — seen as too complex, too speculative, or simply not urgent. But here’s the truth: if your business exists to create impact — for customers, communities, or causes — then unmanaged FX exposure could quietly erode your ability to deliver on that mission.
This isn't just about money. It's about what your money enables.
Every organisation exists to deliver something — a product, a service, an experience, or a promise. Whether you're enabling customers to thrive, grow, create, or simply enjoy what you offer, your ability to deliver consistently depends on financial stability. If FX volatility chips away at your margins, you risk more than a dip in earnings. You risk losing momentum on the very things that matter most — to your customers, your team, and your broader impact.
Ask yourself:
“If FX markets swing against us, what would we be forced to delay, shrink, or cancel?”
In times of economic uncertainty, hedging isn't about playing the markets. It’s about protecting the initiatives that keep your purpose alive, so your customers can count on you no matter what.
You’ve got forecasts. But how much volatility can you tolerate before your ability to deliver starts to hurt?
For example, if you're planning to convert USD revenue of $13.5m into £10m at GBP/USD 1.3500, and you can only absorb a 5% shortfall (receiving only £9.5m), that tolerance becomes your strategic guardrail.
Your risk appetite isn’t just a number — it’s a signal. It tells you when to act, and how much uncertainty you can afford before your customer promise is at risk.
FX markets move. Typically, USD swings around 7% per year — but in more volatile periods, that figure can exceed 20%.
So if your buffer is 5%, and the market moves 20%, you're risking a 15% shortfall. That’s the difference between funding growth from profits vs debt, capital raising or in some cases, staying afloat at all.
Choosing not to hedge is a bet. A big one. And often, it’s a bet against your own strategy.
Hedging isn’t about outsmarting the market. It’s about putting a plan in place that protects your ability to serve your customers and fulfil your purpose, even when conditions change.
That plan should:
It’s not about trying to “win” at FX. It’s about making sure your customers don’t lose out because of it.
Most businesses understand why hedging matters. Where they get stuck is the how — execution often feels too technical, too manual, or too disconnected from day-to-day priorities.
That’s where Tenora comes in. We help purpose-led businesses move fast from motivation to action, embedding FX protection into business-as-usual, so teams can stay focused on growth, service, and impact.
