Exchange Rate Risk Management: A Masterclass by Mr. Priyadharshana Ekanayake

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To give a practical insight into the module Global Strategic Management taught by Dr Andreas Strobl of Lancaster University, UK a masterclass was held on 9th June 2023 for the cohort 7 of Lancaster University Ghana’s Executive MBA class.

The topic for the masterclass was “Exchange Rate Risk Management” and we were honoured to have the Financial Director of Unilever West Africa, Mr. Priyadharshana Ekanayake as the guest speaker for the session. Mr. Priyadharshana spoke to the class on how to mitigate foreign exchange risk to help reduce the financial impact on organisations due to exchange rate fluctuations.

The masterclass began with an overview of exchange rate risk and its implications. The class gained a deeper understanding of how changes in currency values can affect import and export costs, profit margins, and cash flow.

The importance of developing a comprehensive risk management framework was emphasized during the masterclass. Mr. Priyadharshana highlighted the significance of hedging techniques such as forward contracts, options, currency swaps, etc as instruments to enable organisations to reduce or limit the risk in an exchange rate crisis.

By the end of the masterclass, participants gained a comprehensive understanding of the challenges associated with currency fluctuations and left equipped with practical strategies and insights to enhance their company’s ability to manage exchange rate risk effectively.