As an Associate Risk Manager at Ceylon Financial Group, I was involved in a significant project where our mission was to limit anticipated market risk due to volatile currency exchange rates. I was responsible for a crucial business decision involving our hedging strategy.
We performed a detailed risk assessment, used predictive analysis tools, and built several financial models to project potential losses. I recommended implementing a Dynamic Hedging Strategy incorporating derivatives and options to protect from extreme market volatility.
This decision resulted in mitigating our exposure to currency volatility, reducing potential losses by approximately 30%. Our risk-adjusted returns improved significantly due to this strategic decision. It showcased how utilizing informed risk management practices can positively impact business decision-making.