This TMI Cover Story analyses risk from the points of view of industry experts, including Wim Grosemans, Head of International Payments at BNP Paribas Cash Management, Jean-Marc Friess, Head of FX Payments BNP Paribas and Reuben Kane from EMEA Commercialisation FX+, BNP Paribas.
Risk is neither unfamiliar nor always undesirable: however, in each instance, it needs to be treated appropriately: take, mitigate or manage. A company will always take the specific risks related to their business, whatever their industry, as this is where growth and competitive advantage can accrue. It will mitigate risks such as operational risk, where there is no upside. Most market risks, including FX, fall into a third category, where, like the risk of vertiginous heels, risks can create serial pain, but also serial gain, so they need to be managed correctly to limit downside risk without eliminating upside potential.