FINANCE
The energy sector – managing currency risk for complex supply chains
Policy isn’t fair to female-led businesses
A Nottingham researcher is among a group of leading voices in UK women’s enterprise to warn the Government it faces a “tsunami” of job losses and company closures unless it develops a business policy that is fair to women. Dr Lorna Treanor (pictured),
Nottingham University Business School, is a member of the Women’s Enterprise Policy Group (WEPG), which has published a report saying current national policy has failed to support and recognise the differential impact of Covid-19 upon millions of female- led businesses. Titled Framework of Policy
Actions to Build Back Better for Women’s Enterprise, it highlights six policy actions necessary to support female entrepreneurs and sustain economic recovery. Dr Treanor, an assistant professor
of entrepreneurship and innovation, said: “Economically, Covid-19 has impacted upon women and women-owned businesses most severely. These are not just women- owned businesses being affected – these are households and families that have lost income and face horrendous stress due to the precarity of these businesses.” The report, published in August,
outlines how policies have failed to reflect the extra challenges that female entrepreneurs face, including childcare responsibilities, gender bias and access to finance. Dr Treanor has presented her
research to the D2N2 Local Enterprise Partnership. She has partnered with the
University of Nottingham’s Institute for Policy and Engagement and D2N2 to host the first of a series of roundtable events in November for stakeholders to consider how Nottingham might lead the way in supporting inclusive entrepreneurship. Dr Treanor added: “The SME
community is also very aware that Brexit may introduce further shocks. It is crucial that enterprise policy formulation and business support provision is undertaken in a gender-aware manner now, not only to assist women entrepreneurs but to assist economic recovery more widely.”
70 business network November 2020
The energy sector, spurred by rises in renewable sources like wind, solar, hydro and bioenergy, continues to evolve as sustainability becomes a key consideration in the market. But as cross- border supply chains become more fragmented due to a set of demanding operating conditions, it has significant consequences for currency risk. Amy Deakin (pictured), channel partnership manager at Western Union, explains.
THE IMPACT OF THE SUPPLY CHAIN Efficiency in the materials supply chain can have a dramatic impact on a company’s bottom line by increasing productivity, reducing risk and mitigating downtime. It is also important the supply chain is consistent, enabling demand planning and forecast accuracy. One factor that can easily be overlooked is the
potential impact of currency risk on the bottom line. Whether making or receiving payments, foreign
exchange should never be an afterthought. It should be budgeted for as part of any negotiation. Agreed prices and calculated profits can be significantly impacted if the exchange rate moves unfavourably on the day a payment is being made or received. And the more complex the supply chain, the more the risk increases. From companies operating multi-currency treasuries to those dealing simply in dollars or euros, the best way to mitigate currency risk is to have a hedging strategy.
WHAT IS HEDGING? Hedging simply means protecting your business against movements in exchange rates. However much they fluctuate, you can fix your
transactions in advance, so you know what your costs, cashflows and profits will be, putting you in better control of your bottom line. This way, your cashflow can be stable, your
business forecasts can be reliable and your profits can be better protected. By setting a hedging strategy you no longer have
to react to the market – you can be in control at all times. So you can focus on your business without unnecessary distractions.
TAKING CONTROL AMID UNCERTAINTY There is a huge shift underway in the competitive landscape of the worldwide energy sector as new players from producing countries and the high-growth developing markets of China and India join the industry’s top ranks. At the same time, environmental responsibility is at
the top of many agendas and is continuously evolving. In short, there are many external forces at play
which can’t be controlled. Currency risk doesn’t have to be one of them. With planning and forethought, it can be the one part
of the balance sheet not subject to unexpected impacts. It is one area where you really can take control.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80
