Is your company getting its money's worth when it hedges against risk If you are not coordinating your various hedges, the answer might be no.
Like patients who take prescriptions from different doctors, companies that hedge multiple risks without considering how those risks and hedges might interact with each other can suffer unfortunate side effects. At the very least, they might end up over-insuring themselves and paying for risk protection they do not really need. They might even find they have hedged the exposures shareholders are seeking when they buy the company's shares.
The solution is to adopt an integrated approach to risk management that results in cleaner, more cost-effective hedges - hedging...
