In a recent interview, the CFO of a global company, Selena, elaborated on the intricate financial management required to operate effectively in nearly 100 markets worldwide. With 19 trade units and a staggering 80% of revenues generated outside Poland, the company's financial strategy must be both conscious and well-structured to navigate the challenges of such a vast operational landscape.

The discussion delved deep into the primary risks faced by the company, particularly in the realm of currency exposure. Selena identified three distinct types of currency risks: transactional risk, which arises from exchange rate fluctuations between contract inception and execution; consolidative risk, which is related to the conversion of foreign company results into the reporting currency; and economic risk, which has a long-term impact on competitive positioning. Addressing these risks cannot be done spontaneously; instead, there needs to be a clear definition of responsibilities, procedures, and acceptable risk levels.

Furthermore, the CFO explored the balance between centralization and decentralization of financial management within the company. A hybrid approach was deemed optimal, where risk management, liquidity, banking relationships, and reporting systems are centralized, while localized financial operations remain close to the business for competitive advantages. This strategic framework aims to bolster the company's financial agility while mitigating the complexities of operating in various international markets.