The client can be a CFO or CEO. The information can indicators, charts, graphs, statistics, ratios, etc.

I know the VaR is one of them.


closed as too broad by chollida, Quantopik, olaker Oct 3 '15 at 2:20

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For business purposes, a CFO/CEO typically won't be interested at low-level modeling. Metrics such as:

  • Maximum portfolio gross/net exposure (hence gross/net leverage)
  • Maximum per trade size per product
  • Maximum intraday exposure per product

are probably among the more important ones for business decisions.


A CFO typically is not involved in managing risk, though that's not always the case.

If your hypothetical CFO is involved in the day-to-day managing of FX risk, the following could be useful:

  • MtM
  • VaR & Stressed VaR
  • Expected shortfall
  • Correlation between traded currency pairs
  • Sensitivities (Greeks)

If your hypothetical CFO isn't involved in the day-to-day management of risk, VaR and Stressed VaR are great metrics because they sum up information into a single number.

  • Offer rates for options and currency futures.
  • Upcoming publications for economic indicators for short term FX exposure.
  • Future interest rate decisions for long term exposure.
  • Regression for predicting trends.

An equation I made for potential risk exposure:

  • x = Days of exposure.
  • p = Current price.
  • delta = Historical daily price changes. Subscript is how many days into the past.
  • s = average of delta.

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