Finance Meets Flavour: Currency Risk Management & Pancake Making

On Tuesday 17th February 2026, we welcomed clients and partners to Pavilion Knightsbridge for a Shrove Tuesday morning with a difference: fresh pancakes, strong coffee, and a practical masterclass on managing FX risk in today's volatile markets.

Because whether you're flipping batter in a hot pan or managing international cash flows, timing matters. Structure matters. And one wrong move can get messy.

The Global Kitchen: Where FX Risk Begins

For internationally active businesses, FX exposure is rarely deliberate, but it is unavoidable.

Foreign exchange risk is a natural by-product of global business. It arises when companies sell internationally, buy from overseas suppliers, hold foreign assets or liabilities, or operate through international subsidiaries. Exposure is often embedded deep within supply chains and commercial models.

Exchange rates move for many reasons: economic data, interest rate decisions, political events and broader market sentiment. Those movements can materially impact revenue, margin and reported earnings.

The key message? FX risk may be incidental, but its impact is anything but.

Why FX Risk Matters

One of the central themes of the session was how easily currency movements can distort performance. Even when underlying sales volumes are stable or growing, volatility in exchange rates can significantly alter revenue and profit outcomes once translated back into a company's reporting currency.

We explored the different forms of exposure businesses typically face: margin risk on forecasted revenues and expenses, remeasurement risk on booked receivables and payables, and net investment risk when consolidating foreign subsidiaries.

Each behaves differently and appears in different places across the financial statements. Understanding that distinction is the first step towards controlling the outcome.

From Volatility to Visibility

Rather than attempting to forecast currency markets, a notoriously difficult exercise, we focused on something more powerful: discipline.

Hedging is not about speculation. It is about improving forecast accuracy, protecting budget rates and safeguarding key performance thresholds. In uncertain markets, predictability has real commercial value.

We discussed practical tools including forward contracts, market orders and FX options, and how different programme structures; static, rolling or layered, can be used to align hedging with a company's cash flow profile and risk appetite.

There is no one-size-fits-all approach. The right framework depends on the business model, the predictability of cash flows and the organisation's tolerance for volatility.

At Bondford, our focus is not speculation. It is predictability. We work with internationally exposed businesses to design disciplined, governance-led frameworks that protect margins and support confident international growth.

Strong Conversations. Excellent Pancakes.

After the discussion, we moved from spreadsheets to spatulas.

Currency risk management and pancake making may not seem related, but both require preparation, balance and good technique. Get the timing wrong, and the result can quickly unravel.

Fortunately, the kitchen challenge delivered some impressive results, and no major margin calls.

It was a pleasure hosting such an engaged group at Pavilion Knightsbridge. The quality of conversation reflected the reality many businesses are facing: FX volatility is not going away, but unmanaged volatility does not have to be the default.

Thank you to everyone who joined us for Finance Meets Flavour. In FX, as in the kitchen, preparation changes the outcome. Missed this session? Get in touch with the Bondford team to discuss how we help internationally exposed businesses manage FX risk with discipline and clarity.