According to the document and table,only write this question。 Essay Example

Hedging Strategy 2

Hedging Strategy

Since hedging is defined as the process of making investments that are done to reduce the amount of risk of adverse price movement in an asset. The hedging strategy is largely carried by taking an offsetting position in a related security. In this case study, I shall discuss the scenario that AIFS should design a hedging strategy and why one would advocate for the said strategy. Based on the information provided the AIFS should adopt the triple bottom line hedging strategy.

The company should consider controlling the currency risk that can adversely affect the currency fluctuation and hence increase the cost base within the expected volume scenario. The triple bottom largely is an accounting framework that deals with the incorporation of the three dimensions which includes the financial, social and environmental performance. It is considered different to other methods since it includes the environment also referred to as the ecological aspect and social measures that are hard to assign a monetary value to

AIFS can be categorized as a non-profit making organization; it is important for the organization to be proactive through financial analysis. The process enables the company to be proactive hence ensure it enjoys a win-win business operation. The hedging plan should be evaluated in a manner that will reduce the potential risks changing them into profits.

Why advocate of triple bottom hedging strategy?

Based on this format, the company will be more focused on fulfilling the needs of the stakeholders within the company. It will make the workforce more focused on success through effective motivations hence retaining them. The desire to satisfy the stakeholders through provision of personal meanings is identified as a way to which employees are satisfied. The Human resource in any organization is identified as the most important asset in any company. The process will be instrumental in making certain that controls the currency fluctuation while increasing the cost per sales done