But whether you use the plain vanilla strategy, which "does reduce your volatility," or employ more exotic tactics, it is important to consider risk in totality, says . "Unfortunately, some companies hedge based on their receivables rather than true economic risk," she says. Hollein was previously a managing director of financial risk management for KPMG, where she led the treasury practice. Prior to joining KPMG in 2005, she held senior financial executive management positions at Ruesch International, ABN Amro Bank, Citibank and Westinghouse Electric Corp.

She points to the example of a U.S. telecom buying a company abroad. While awaiting SEC approval, "the dollar moved against them and the price went up" by about $10 million. "They ended up doing the deal but they wound up hedging the contingent exposure."

"The ideal would be to naturally net your receivables and payables," she says. Although this ideal may prove practically unattainable, there are moves a company can make, such as borrowing in the foreign currency or locating a facility overseas, that can move this goal forward.