FX Hedge Check: helping treasury teams manage risk exposure in trading currencies.
The FX Hedge Check tool addresses a gap in Just’s platform offering by empowering clients to validate their FX Forward contracts against anticipated risks. It helps treasury teams compare their existing forward contracts against projected future transactions, highlighting potential coverage gaps or over-hedging situations.Thereby enhancing client confidence in their risk management strategies.
Background
Just serves financial professionals in corporate treasury teams, helping them analyze the costs and margins of their FX trades. Among these trades are FX Forward contracts—hedges designed to mitigate the risks of future currency exchanges. A corporate client approached Just with a specific concern: while they felt comfortable with the costs and margins of their forward contracts, they were uncertain whether these hedges adequately covered their future currency risks.
This limitation in Just’s current offering presented an opportunity to design a solution that would address this gap.
The challenge
Corporate treasury teams faced a significant problem:
While they could execute FX trades to hedge their currency risks, they lacked visibility into whether these hedges would adequately protect them against future currency fluctuations.
Just's platform already helped them analyze trade costs, but they needed a way to connect their future business activities with their hedging strategy.
Problem definition
Corporate treasury teams currently lack clear visibility into their hedge coverage across different time horizons and currency pairs. While they can access trade costs and margin analysis through Just's platform, they struggle to:
Visualize the relationship between projected exposures and existing hedges
Identify coverage gaps across different time periods
Understand their position relative to target hedge ratios
Make informed decisions about additional hedge requirements
Goal
Our goal was to help treasury teams of businesses trading in various currencies better understand and manage their foreign exchange (FX) hedge coverage, ultimately reducing their currency risk exposure.
Help companies move beyond manual spreadsheet and automate the exposure manageemnt process
How might we
...help Treasurers use hedging to protect their cash flow against unexpected price changes, currency fluctuations, or interest rate movements in an automated way.
Why this matters
Business impact for customers
Insufficient hedge coverage leads to unexpected FX exposure
Over-hedging ties up unnecessary capital
Misaligned hedge timing creates temporal exposure
Complex multi-currency operations require sophisticated risk assessment
Solution | Helping treasury teams build confidence in their hedging strategies
We built a FX Hedge Check Analysis feature that provides immediate visibility into a companies hedge coverage status across different currency pairs while enabling detailed analysis of associated potential risks.
The key features of this tool include:
Hedge Analysis Section
This section contains tools for analyzing hedge coverage and risk assessment. Users can access both high-level overviews and detailed analysis tools for specific currency pairs. The historical analysis feature allows users to track changes and identify patterns over time.
Data Management Section
This area focuses on data input and validation. It includes tools for uploading trade data, mapping fields, and maintaining data history. The validation process ensures data quality while providing clear feedback on any issues.
Reports Section
The reporting section offers both standard and customizable reports. Users can schedule regular reports and access historical report data. The custom report builder allows users to create specifically tailored analyses.
Impact and results
The solution delivered significant benefits:
75% reduction in time spent on hedge analysis: Average 12 hours saved per week
90% of users reported increased confidence in their hedge coverage; user satisfaction rate
40% decrease in under-hedged positions
Positive feedback from 95% of beta users
Design process
Understanding the problem: client requirements
To deeply understand this challenge, we conducted extensive research through several channels:
User Research
We conducted a combination of in-depth interviews, observational sessions, and surveys to understand their hedge management processes.
Primary Research
Client Interviews
We conducted in-depth interviews with 12 treasury professionals across different organization types. These interviews lasted 60-90 minutes each and focused on understanding their daily workflows, challenges, and needs.
Secondary Research
We analyzed support tickets with customer success team and feature requests from existing Just platform users. This data provided insights into common pain points and desired functionality.
Our research revealed several critical pain points:
Treasury teams spent hours manually comparing hedge positions against projected expenses
Excel-based tracking led to errors and inconsistencies
Teams struggled to visualize their hedge coverage over time
Quick action was needed when coverage dropped, but issues were often discovered too late
Primary Findings
Time and Efficiency Challenges:
Treasury teams spent an average of 12 hours per week on hedge analysis
78% of teams relied on manual spreadsheet calculations
92% reported concerns about data accuracy in their current process
Findings/Research Insights:
Many treasury teams had no visibility into hedge effectiveness against future exposures as they are unable to assess if current hedges match expected business needs against future risks and also lacked tools to analyze potential coverage gaps
Specific User Quotes:
"I spend hours every week just trying to figure out if we're covered properly."
- Senior Treasury Manager, Manufacturing Company
"By the time we realize we're under-hedged, it's usually too late to fix it cost-effectively."
- Treasury Director, Retail Corporation
"We need a way to see our coverage position quickly, without running complex calculations."
- Treasury Analyst, Technology Company
Persona development
In developing the FX Hedge Check tool, we recognized that creating detailed personas would be crucial for several reasons. Treasury teams, while sharing common goals, often operate differently based on their organization's size, industry, and complexity of operations. By developing specific personas, we could ensure our solution would address the nuanced needs of different user types rather than creating a one-size-fits-all approach.
Findings
Customers needed a way to see their coverage position quickly, without running complex calculations.
Time and efficiency
treasury teams spent an average of 12 hours per week on hedge analysis & 78% of teams relied on manual spreadsheet calculations
Risk management
89% wanted better visibility into future coverage positions
Process documentation
91% lacked confidence in their coverage reporting accuracy
Preventive measures
67% discovered hedge coverage issues only after they became problematic
Competitive analysis
We examined existing solutions and found that while some tools offered basic hedge tracking, none provided the comprehensive visibility our users needed. This gap represented a significant opportunity for Just to lead in this space.
Research into existing solutions showed that while many platforms offer basic hedge tracking, none effectively combine:
Projected exposure visualization
Real-time hedge coverage analysis
Target ratio monitoring
Temporal alignment assessment
Collaborating with the internal team
The project's success relied on close collaboration:
Regular sync-ups with engineering team
Weekly feedback sessions with users
Design reviews with stakeholders
Cross-functional workshops for feature prioritization
Success metrics
User Engagement
Dashboard usage frequency
Time saved in analysis workflow
Feature adoption rate
Risk Management
Reduction in hedge coverage gaps
Faster identification of coverage issues
Decreased manual analysis time
Business Impact
Improved hedge efficiency
Reduced currency risk exposure
Positive user feedback
Increased platform usage
Design decisions
Solutioning & Iterating
Sitemap Structure and Organization:
The sitemap is organized into four main sections, each serving a distinct purpose in the user's workflow:
Hedge Analysis Section
This section contains tools for analyzing hedge coverage and risk assessment. Users can access both high-level overviews and detailed analysis tools for specific currency pairs. The historical analysis feature allows users to track changes and identify patterns over time.
Data Management Section
This area focuses on data input and validation. It includes tools for uploading trade data, mapping fields, and maintaining data history. The validation process ensures data quality while providing clear feedback on any issues.
Reports Section
The reporting section offers both standard and customizable reports. Users can schedule regular reports and access historical report data. The custom report builder allows users to create specifically tailored analyses.
Current state journey map
Pre-Analysis Phase:
Gather business projections from various departments
Collect current hedge position data from banking platforms
Download market data for analysis
Time spent: 2-3 hours
Pain points: Manual data collection, multiple data sources, format inconsistencies
Analysis Process:
Input data into spreadsheet templates
Calculate coverage ratios manually
Cross-reference different time periods
Time spent: 4-5 hours
Pain points: Complex calculations, prone to errors, time-consuming
Decision Making:
Review coverage gaps
Consult with stakeholders
Plan hedge adjustments
Time spent: 2-3 hours
Pain points: Delayed insights, difficult to explain findings
Future state journey map
Data Integration:
Upload business projections directly
Automatic data validation
Immediate mapping to existing positions
Time spent: 15-30 minutes
Benefits: Automated processing, error prevention
Analysis Phase:
Instant visualization of coverage position
Real-time gap analysis
Automated alerts for coverage issues
Time spent: 15-30 minutes
Benefits: Immediate insights, proactive notifications
Decision Support:
Clear visualization for stakeholders
Automated reporting
Action recommendations
Time spent: 30-45 minutes
Benefits: Confident decision-making, clear communication
End - to - End user flow
Testing and iterations
Wireframe iterations
Version 1.0 - Basic line chart of hedge coverage analysis
Basic line chart showing projections and hedges
Limited interaction capabilities
Binary comparison without context
User Feedback: "Need to see hedge targets and coverage percentage. Line graph makes it hard to compare monthly values."
"Hedge coverage gap not immediately visible"
Version 2.0 - Currency pair risk analysis
The currency pair risk analysis graph represents an initial approach to visualizing hedge coverage data. This version focused on comparing expected vs. hedged amounts across different currency pairs in a bar chart format.
Bar chart showing exposure by currency pair
Visual side-by-side comparison to easily spot gaps or excess coverage
Implemented basic hover information card interaction
User Feedback:
"Need to see how exposure changes over time and track against targets."
"I still have to mentally calculate my hedge coverage ratio"
"This doesn't give me time period flexibility so I can make decisions for certain trading periods""Bar charts are easier to read through"
Final Version - Time-based Exposure Analysis tool
The final version evolved to show:
More sophisticated time-series data
Hedge coverage gaps more immediately visible - Hedge target percentages as dotted lines
Both positive and negative exposure values
Monthly granularity with quarter indicators
Multiple view options (Month/Quarter/Rolling 12 Month/Year)
Comprehensive tooltip system
Clearer context for decision-making
More flexible analysis options
Automated alerts and recommendations
Testing
Data-Driven Decision Points:
Switch to bar chart: 80% of users found it easier to compare monthly values
Adding hedge targets: 92% of test users identified coverage gaps faster
Multiple time views: Addressed need from 70% of enterprise clients
Our testing process was thorough:
Usability testing with 15 treasury professionals
A/B testing of different visualization approaches
Usability Testing:
15 participants from target user group
Task completion rate: 94%
Average time to complete key tasks:
Upload data: 2.5 minutes
Analyze coverage: 1.5 minutes
Generate report: 2 minutes
Quantitative Results (Post-Release):
75% reduction in analysis time
90% user satisfaction rate
95% accuracy in gap identification
40% decrease in under-hedged positions
Qualitative Feedback:
"The visualization makes it immediately clear where we stand with our hedge coverage."
Treasury Manager, Global Manufacturing Company
"Being able to see both the actual numbers and percentages at once is a game-changer."
Senior Treasury Analyst, Tech Company
"The automated alerts have already helped us avoid several potential coverage gaps."
Treasury Director, Retail Corporation
End - to -End Design
Initial Data Integration
The process begins when treasury teams upload their FX trade data to the Just platform. This data includes details of their forward contracts, such as contract values, settlement dates, and currency pairs. The system accepts various data formats, including CSV files, Excel spreadsheets, or direct API connections from treasury management systems.
Trade Data Processing
Once uploaded, the system processes the trade data through multiple validation checks to ensure data quality and completeness. This includes verifying mandatory fields, checking date formats, validating currency pairs, and confirming that all necessary information for hedge analysis is present. The system automatically maps fields using predefined templates, with options for manual adjustments if needed.
Future Exposure Analysis
The system then analyzes the company's expected future currency needs based on their uploaded trade data. It processes information about anticipated payments and receipts in different currencies across future time periods. This creates a baseline of expected currency requirements against which existing hedges can be evaluated.
ONBOARDING/SET UP
Initial Setup
* User uploads or connects existing forward contract data
* Input expected future transactions
* Set preferred coverage ratios and alert thresholds
*IMAGE*
Data Import Step
Offers two methods for importing forward contract data:
File upload with drag-and-drop functionality
Direct system connection option for treasury management systems
Clear visual cues and supportive messaging
Future Transactions Step
Structured form for entering future transaction details
Key fields include transaction date, amount, currency pair, and type
Option to add multiple transactions
Alert Configuration Step
Settings for coverage ratios and exposure limits
Notification preferences configuration
Email alert setup
The design incorporates:
Progress indicator showing the three-step flow
Consistent card-based layout
Clear navigation between steps
Responsive form elements
Visual icons and helpful messaging
DASHBOARD INTERFACE: DETAILED ANALYSIS
The detailed analysis screen provides treasury professionals with comprehensive insights into their FX hedge coverage positions and risk metrics. This screen expands on the overview by offering granular data visualization and advanced analytics of hedge effectiveness across different time periods and currency pairs.
Key Performance Indicators at the top of the screen immediately highlight critical metrics like total exposure value, average hedge ratios, and coverage gaps. These metrics are color-coded to quickly indicate performance against targets, with amber and red highlighting areas requiring attention.
The period-by-period breakdown table presents a detailed view of expected exposures versus hedged amounts, with coverage ratios calculated for each period. The negative coverage ratios (shown in October-November) indicate positions where hedging is creating additional exposure rather than reducing risk, necessitating immediate review and adjustment.
Risk assessment panels provide deeper analysis of exposure concentrations and hedge effectiveness. The distribution charts show the percentage of positions falling into different risk categories (Optimal, At Risk, Critical), while currency pair analysis reveals potential concentration risks in specific currency pairs. This helps treasury teams identify both temporal and currency-specific risks in their hedging program.
The interface maintains consistency with Just's design language while presenting complex data in an accessible format. Interactive elements allow users to filter time periods, export detailed reports, and drill down into specific areas of concern, supporting both analysis and decision-making processes.
Upload Business Projections:
The business projections upload system provides a streamlined way for treasury teams to import their expected FX transactions into Just. Teams can upload their data through a CSV/Excel file, download a standardized template to ensure correct formatting, or connect directly to their Treasury Management System for automated data flow. This flexible approach accommodates different company sizes and technical capabilities while maintaining data consistency. The system performs comprehensive validation checks during import, flagging any potential issues with date formats, currency pairs, or transaction types before processing. This ensures data accuracy and prevents analysis errors downstream.
Review & Confirmation:
The final review stage provides a comprehensive summary of imported projections and configured targets, displaying key metrics like total transaction records, date ranges, and currency pairs covered. Users can select processing options such as replacing existing projections or updating hedge targets, with clear indications of how these choices will affect their current setup. This validation step ensures that all changes are intentional and aligned with the company's hedging strategy before being implemented in the system.
Add Hedge Targets:
The hedge target configuration allows treasury teams to set and manage their desired coverage ratios across their FX exposures. Teams can choose between a simplified global target that applies uniformly across all currency pairs, or create currency-specific targets to reflect different risk appetites for various currency exposures. The interface includes advanced settings for time horizons, review frequencies, and alert thresholds, enabling proactive management of coverage positions. Each target configuration is validated against historical patterns and projected exposures to ensure practical implementation, with clear visual feedback showing the impact on coverage ratios. This systematic approach to target setting helps treasury teams maintain consistent risk management practices while remaining flexible to changing business needs.
Reflection & Learnings
Designing a comprehensive solution for treasury teams' hedge analysis needs was both challenging and enlightening. This project pushed me to deeply understand the complexities of financial workflows while maintaining focus on user-centered design principles. Through close collaboration with treasury professionals and technical teams, I transformed a complex analytical process into an intuitive, powerful tool that significantly improved hedge coverage management. The journey not only enhanced my understanding of enterprise financial tools and internal teams workflows, but also reinforced the importance of balancing functionality with user experience.
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