Coca-Cola FX Risk Management Framework Enhancement

This document is a case study detailing Coca-Cola's efforts to enhance its foreign exchange (FX) risk management framework in response to challenges posed by growth, digitization, and volatile markets. In the early 2020s, the treasury team recognized the need for a more effective FX program and began developing a new solution in 2023. The case study outlines how the new framework improves productivity, communication with the C-suite, and the team's ability to evaluate and manage currencies. It describes the collaboration with Citi to create a digitized risk and hedge assessment framework that integrates data analytics and quantitative metrics to inform decision-making. The framework aims to provide consistent and high-quality risk management decisions, automate data gathering, and enhance performance tracking aligned with strategic KPIs. The document also highlights the benefits of increased automation, improved visibility, and the flexibility to adapt hedging strategies to real-time market conditions, ultimately adding value to the business.