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FX P&L Impact Modeling

Quickly and collaboratively evaluate the impact of foreign exchange rate changes on costs and revenues. Ease discussions with business teams on performance, budget decisions, investments, hedging, and more.

The goal of this adapt and apply solution is to show finance teams how Dataiku can be used to efficiently manage and productionize the analysis of FX Impact. More details on the specifics of the solution can be found on the knowledge base.

Business Overview

Measuring exchange rate impact on revenues and expenses is critical within any multi-currency business. While the accounting impact of exchange rates is usually handled by formal rules, the internal business discussions around the impact of exchange rate fluctuations and their implications often remains complex.

Providing an environment to allow FX experimentation and impact modeling that is robust,  scalable, governable, and has the capacity to handle large data sets and complex business logic plays an instrumental role in allowing Finance and Business teams to focus on decision making rather than tedious calculation and iteration. 

With improved FX impact understanding and modeling delivered on a modern analytics platform, Finance teams are in a position to:

  • Better analyze performance to plan. 
  • More accurately communicate financial results and the impact of FX fluctuations.
  • Develop advanced FX hedging strategies, e.g., across an entire P&L, for specific currencies, specific projects,  and more.

More broadly, FX impact modeling is one of the first steps Finance teams can take towards embracing the potential of agile analytics to enhance their business partnering positioning across all dimensions: from budget building and investment decision making to precise monitoring and forecasting, at any given granularity.

Highlights

  • Simply ingest costs and revenues with full flexibility on periods, granularity and input systems.
  • Compute FX impacts across currencies and compare to various rates, e.g., budget, current, forecast.
  • Accelerate discussions between Financial Analysts and Business Owners thanks to powerful interactive dashboards with pre-built analyses.
  • Immediately begin FX rates experimentation and review results through the dedicated visual interface.
  • Empower all finance teams through a visual setup allowing any team to quickly create the project, connect datasets, and set key parameters, with scalable design.