The organisation of foreign exchange risk management: a three‐country study

This paper reports on some of the results obtained from three contemporaneous in‐depth studies conducted with multinational corporations in the UK, the US and Germany. It focuses on the organisation of foreign exchange risk management, in particular the goals of exchange risk management, the centralisation of decision making, and the nature of the decision makers themselves. Whilst bearing in mind the limitations of the survey technique, which of necessity limited the size of each of the three samples, the results represent confirmation of the risk‐averse nature of multinationals, the effect of size on centralisation of decision making, and the pervasiveness of the treasurer as a decision maker.