WHEN THE CUSTOMER LANDSCAPE CHANGES
What if demand slows
before your costs do?
Operating commitments can remain even as orders soften. Understanding how economic conditions reach your revenue is a starting point for a useful hedge.
Economic
conditions→Customer
demand→Business
revenue
A conceptual view of exposure
WHEN OPERATING COSTS SHIFT
What if costs rise
before prices can?
Energy, freight and other inputs can change faster than customer pricing. The question is how much of that movement reaches your margin—and over what period.
Input
prices→Operating
costs→Business
margin
A conceptual view of exposure
WHEN BUSINESS CROSSES BORDERS
What if the exchange rate
changes the economics?
Revenue in one currency and costs in another create a moving relationship. Timing, payment terms and the direction of your exposure all matter.
Exchange
rates→Cross-border
cash flows→Business
margin
A conceptual view of exposure