Risk Exposure Summary

The Risk Exposure Summary will analyze your entered cashflow information and compare your net cashflow against your current hedges. If your hedging is short in some periods, the analysis will indicate the amount needed to cover the shortage and actionable recommendations to cover it.

On this page, you can view your

• Current Exposure Summary

• Current Hedges Summary

• Ways to Mitigate

At the top of the page, the exchange rate The rate at which one currency will be exchanged for another currency. against the base currency Usually refers to the domestic or home currency. In a currency pair, this is the first currency quoted. is displayed for all the selected currencies.

Default View

By default, the Detail View toggle is turned OFF and the page displays a Cumulative view. In this view, the CURRENT EXPOSURE SUMMARY table displays a concise summary, and does not display the rows for the selected foreign currencies. The details of the CURRENT HEDGES SUMMARY table are hidden, and you will see a message prompting you to toggle Detail View to view your hedges summary details. Toggle the Detail View to ON (toggle to the right) to view all the selected currencies for the cashflow.

View Exposure Summary by Currency

If you have selected multiple currencies for the cashflow and prefer to view the Risk Exposure Summary for one currency at a time, you can select that currency from the View drop-down. The page will update and display the Risk Exposure Summary for the selected currency.
Note: The Detail View toggle is not displayed in the individual currency view.

Select Cashflow

The Select Cashflow dropdown will display a list of all your completed cashflows, with the most recently modified cashflow appearing at the top of the list. You can switch between your current cashflow and your saved cashflows for data comparison.

• By default, the dropdown will display the name of the current cashflow. You have the option to scroll and choose a cashflow from the list or you can filter the list by typing the name of the cashflow.
• After you've chosen a cashflow, it will load as the per the view currently set on the page, allowing you to make edits and regenerate recommendations as needed.
  Note:
  • The Select Cashflow dropdown list will only include saved and completed cashflows.
  • If you've chosen a currency from the View dropdown and then switched the cashflow from the Select Cashflow dropdown list, the selected cashflow will load as the Default View on the page.

Print/Export Risk Exposure Summary

Click one of the icons at the top of the page to print the summary as PDF or export the results to a CSV file.
Note:The option to print to PDF is only available for Cumulative view. By default, the system will print the PDF report in portrait mode. However, to maintain optimal formatting, it is recommended to print the PDF report in landscape mode.

Current Exposure Summary

In this table, you can view the current net exposure for your cashflow to help you determine your hedging requirement for the current cashflow horizon.
Note: Toggle Detail View to view all the selected currencies for the cashflow.

• The first row will display your cashflow name and the current horizon specified for the cashflow.

• The TOTAL NET EXPOSURE (Base Currency) row will show the total net amount converted to the base currency using the exchange rate displayed at the top of the page. The base currency code is prefaced to the amount here. Below this row, the net cashflow for each currency selected (prefaced with their currency code) is shown. The values in this table will match the values shown in the table for Net Cashflow on the Review Summary page. Negative values displayed in Red indicate your risk exposure.

• The HEDGE RATIOS row will display the hedge percentage you entered in the table for Hedge Ratios on the Review Summary page. You can modify the hedge ratios to view how the percentage impacts the hedging recommendations. Click Edit to modify the Hedge Ratios percentage. In the Edit Hedge Ratios dialog, enter your preferred Hedge Ratio % for the selected horizon. The entered value is saved when you click SAVE and the page will refresh with updated recommendations for you to review.
  Note:

• You can enter a value between 0-100 (both inclusive). You cannot exceed 100.

• You cannot enter a decimal or an invalid number. If you attempt to add a decimal number the system will round it to the nearest integer.

• To close the dialog without saving any changes, click CANCEL or click outside the dialog.

• The TO BE HEDGED row displays the hedging amount which is calculated by multiplying the TOTAL NET EXPOSURE (Base currency) by the HEDGE RATIOS percentage. The subsequent rows show the hedging amounts for each selected currency (prefaced with their currency codes), calculated similarly. Negative values displayed in Red indicate that your outgoing expenses exceed your incoming funds. The CURRENT HEDGES SUMMARY and the WAYS TO MITIGATE section will help you identify your strategy to cover your risk exposure.
  Note: The system will round off the calculated hedge amount to the nearest 2 decimal places.

Current Hedges Summary

In this table, you can view a summary of the hedges you currently have with Corpay (including drawdowns) and the hedges that you have booked outside of Corpay.
Note: Toggle Detail View to view your Current Hedges Summary.

• The first row will display your cashflow name and the current horizon specified for the cashflow.

• The CORPAY HEDGES row shows the hedges placed for each currency selected (prefaced with their currency code). The system will retrieve the list of your booked forwards expiring in the selected horizon and display the total number of forwards available against the selected currency. Click the Detail View link to view a list of your available forwards that you have booked with Corpay. For more information, see Corpay Hedges.
  

• If you or your dealer have executed any drawdowns against the forward contract A risk management tool that allows you to mitigate the risk of fluctuating exchange rates by locking in a foreign currency rate today, for the settlement at a future date, or series of dates. to cover your shortfalls, as outlined in the WAYS TO MITIGATE section, the drawdown amounts that have been booked against the forward contract for each currency (prefaced with their respective currency code) will be displayed in the DRAWDOWN ADJUSTMENTS row. The values displayed here will help you assess the impact of the drawdown on your balance calculation in the WAYS TO MITIGATE section and analyze its effect on your cashflow.
  Note: This row will be collapsed if there are no drawdowns booked in the selected horizon.
  

• The NON-CORPAY HEDGES row shows the hedges placed outside of Corpay for each currency selected (prefaced with their currency code). The values in this table are populated from the values you entered in the Non-Corpay Hedges table on the Enter Cashflow Transactions page.
  

Ways to Mitigate

The system will analyze and calculate the difference between your cash flow hedging needs and your existing hedges. This will help you identify if you have any shortfalls and assess if you need additional hedges to cover them. If there is a shortfall, the Risk Visualizer algorithm will recommend possible strategies to cover the shortfalls in your hedges and secure your cashflow exposure against FX risk.

• The first row will display your cashflow name and the current horizon specified for the cashflow.

• The BALANCE (BASE CURRENCY) row will show the sum of all the foreign currency balances converted to base currency using the exchange rate displayed at the top of the page. Below this row, the balance for each currency selected (prefaced with their currency code) is shown. The amount displayed for each currency is calculated as the sum of TO BE HEDGED + CORPAY HEDGES + NON-CORPAY HEDGES. Negative balances displayed in Red indicate that your current hedges (Corpay and Non-Corpay) are insufficient to cover the portion of the net cashflow you wish to hedge.
  Note: If there is a drawdown executed against a forward, the BALANCE (BASE CURRENCY) is calculated as the sum of TO BE HEDGED + CORPAY HEDGES + DRAWDOWN ADJUSTMENTS + NON-CORPAY HEDGES.
  

  EXAMPLE
  In this example, CAD is the base currency Usually refers to the domestic or home currency. In a currency pair, this is the first currency quoted. and the selected currencies for the cashflow are USD and EUR. The conversion rates for this example are USD/CAD = 1.32095 and EUR/CAD = 1.49037.
  
  BALANCE (USD) = [A]TO BE HEDGED USD 80.00 + [B]CORPAY HEDGES USD 200.00 + [C]DRAWDOWN ADJUSTMENTS USD 121.00 + [D]NON-CORPAY HEDGES USD 0.00 = [E] USD 401.00*1.32095 = CAD 529.70095. Similarly, the balance for EUR is calculated [F] EUR= 4800.72 *1.49037= CAD 7154.8490664.
  The BALANCE (CAD) row will show the sum of the converted balances CAD 529.70095 + CAD 7154.8490665 = CAD 7684.5500164 rounded off to [G] CAD 7684.55.
  
  

Risk Mitigation Strategies

Risk Visualizer uses advanced algorithms to analyze and recommend proactive measures to mitigate and protect your cashflow from potential FX risks. From the recommended risk mitigation strategies,you can book a Forward Trade directly through our platform Corpay Cross-Border. However, for executing options like Drawing down against a Forward or Rollover, please contact your account representative.

Note: Client represents and warrants that they are only inputting data they have the right to process. Client acknowledges that they are solely responsible for the quality, reliability, and accuracy of all data they enter, as well as any reports generated from that data.