Automated FX hedging at Lerøy Seafood calls for skillset 2.0
VIDEO | If the execution of forex hedging takes so long that it erodes any protection hedging provides, you know that something has to be done. When Hans Ljøen joined leading Norwegian seafood producer Lerøy Seafood as Head of Treasury two years ago, this was one of the first issues he tackled. In his session at the Treasury 360° Nordic conference, he detailed how implementing fully automated FX trading has transformed the treasury.
Read also our recent interview with Hans before the event, available on the news site here, or in the event magazine here.
With its products on five million plates every day in more than 80 countries, FX hedge volumes at Lerøy Seafood exceed €1.5 billion every year. Before automation, this was achieved by approximately 15,000 manual inputs – always entered in the same manner – into different systems every year.
Given his background in fintech, Hans Ljøen immediately recognised that Lerøy Seafood’s FX hedging process, with its constant repetition, was primed for automation. This was eventually achieved by integrating the ERP system to a FX automation software and a FX trading platform.
But that was not the end of the story. Hans Ljøen revealed that the most challenging part of the integration has been governance and setting up internal controls to minimise the impact of errors. He believes that the role of treasurers at Lerøy Seafood is transitioning from one that’s based on executing traditional treasury tasks to one that’s more analytical – including a deeper understanding of business processes, operational risks, and new systems.
Hans Ljøen is Head of Treasury, Lerøy Seafood
• News around Treasury 360° Nordic 2023, on 20 April, is gathered here.
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