Foreign currency volatility: 3 questions directors should ask.

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The board of directors for a U.S.-based equipment manufacturer, headquartered in the Northeast, found out the hard way how currency exchange rates can impact business, especially in a post-Brexit world.

The company, which generates $1.1 billion in annual revenues, including 340 million pounds through sales in the United Kingdom, saw losses after the dollar strengthening against the British pound. The currency change frustrated the CFO who had to report an average loss of $2 to $22 million each quarter to the board. The losses resulted in lower bonuses and postponement of a long-anticipated company project.

The...

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