Volatility in the foreign exchange market can be a risk that pays off for some investors, but a recent survey shows that this type of risk is a concern for many professionals in the financial industry. The survey asked 180 global finance professionals about FX risk. The responses show that FX volatility causes a noticeable negative impact on firms. In fact, 74 percent of the responders agreed that they are experiencing FX volatility. Only 15 percent of that group said that this volatility had no impact on their firm. For the remaining 85 percent of those experiencing FX volatility, the negative impact was measurable, with the risk affecting revenues and costs of goods.
The survey results outline one important concept: FX risk needs to be managed. To find out how finance professionals are responding to volatility issues in the foreign exchange market, have a look at the infographic below.