Corporate treasury outsourcing has been around since the late 1980s and has, until Bastion Currency Management (BCM) modified it for SMEs by breaking it down to its component parts, been used chiefly by multinationals.
The primary financial risks that treasury is usually responsible for can be categorized as such:
More specifically, Agency Treasury Services traditionally focus on certain subsets of the above primary financial risks. Multinationals would often outsource two or more of the following areas to experts rather than retain in-house:
What treasury outsourcing is not!
We understand that SMEs can feel a loss of control in using a third party services provider, which is why all aspects of the service are well documented in a clear and concise manner, so that you understand exactly what each service provides and what it doesn't cover. A company's main financial management and strategic responsibilities are NOT outsourced. All stakeholders (e.g. owner, CFO, accountant) remain fully involved with all the high-level strategic and management responsibilities, and work with us to "best source" their foreign exchange requirements to sustainably realize value by focusing on core activities while we smartly manage non-core activities. Outsourcing only fails when it is viewed as a short-term, tactical solution rather than as a long-term strategic partnership.
What are the benefits you will realize from partnering with us in a strategic FX outsourcing initiative?
At Bastion Currency Management we play to our strengths and experience by providing Small & Medium Enterprises (SME) to "best source" their foreign exchange needs to our Treasury FX Specialists.
We offer a comprehensive portfolio of Currency & Risk Management Services designed to meet the challenges businesses face with growing international trade.
An agency treasury service where you "best source" your current, in-house currency operations to the expert administration of Bastion Currency Management. We work within your parameters (e.g. credit, margin requirements, timeframes, liquidity) to work your FX orders for best execution and order management seeking some exposure to specific currency factors to benefit from price movement without adding unrewarded risk.
To hedge or not to hedge is a dilemma many SMEs face, and this is made more demanding by having to weed out conflicted parties' advice and whether or not it is actually in your benefit. Take solace in knowing that we only work for you and your best interest in developing tailored risk management solutions. Our first step in answering the hedging question for you begins with first determining how a 1% exchange rate move affects your profit margins, which banks and brokers never ask! Simple question, not so simple answer.
An FX Policy is a documented process and procedures manual in regards to your FX operations. It lays out basic items, such as who is authorized to deal, to more complex matters like allowable FX products, and hedging strategies used (e.g. dynamic, layering). Transaction Cost Analysis (TCA) is an audit of your FX deals using independent FX prices. We compare the results with the agreed upon spread from your FX provider to determine hidden costs from the variance in rates.
Bastion Currency Management leads the industry in third-party foreign exchange services. Our professional FXperts put the "Person" back in Personal; right where it should be!
Free Consultation