Help with answering a finance question

Review each article and in no less than 200 words for each article make any suggestions you feel would assist them. Do you think the author has a solid understanding on building a derivative management program for a firm? Is there anything you could add to further reinforce their understanding of building a derivative management program?
Article A. (Nicole)

For the simulated company that will have divisions in the US, Germany, and Japan I will build a derivative management program for the firm that revolves around mitigating foreign currency exchange risk. The term “foreign exchange risk” refers to the potential for a loss in an overseas financial transaction owing to currency changes. Due to having divisions across the globe, it will be imperative that the company manages the risk that will come with the fluctuations of foreign currency. “Also known as currency risk, FX risk and exchange-rate risk, it describes the possibility that an investment’s value may decrease due to changes in the relative value of the involved currencies” (Ganti, 2020). Firms can utilize derivatives to effectively minimize various financial risk exposures when employed appropriately. Foreign currency risks, interest rate risks, and commodity or product input price risks are three primary methods to use derivatives for hedging.
There are three types of foreign exchange risk:
Transaction risk: This is the risk that a company faces when it’s buying a product from a company located in another country. The price of the product will be denominated in the selling company’s currency. If the selling company’s currency were to appreciate versus the buying company’s currency, then the company doing the buying will have to make a larger payment in its base currency to meet the contracted price.
Translation risk: A parent company owning a subsidiary in another country could face losses when the subsidiary’s financial statements, which will be denominated in that country’s currency, have to be translated back to the parent company’s currency.
Economic risk: Also called forecast risk, refers to when a company’s market value is continuously impacted by an unavoidable exposure to currency fluctuations. (Ganti, 2020).
The company can use a forex hedge to mitigate the risk. They can purchase foreign exchange futures contracts which will significantly decrease the risk, but it will not eliminate it entirely. “The futures contract is a separate transaction, but it is designed to have an inverse relationship with the currency exchange impact, so it is a decent hedge. Of course, it’s not a free lunch: If the dollar were to weaken instead, the increased export sales are mitigated (partially offset) by losses on the futures contracts” (Ganti, 2020).

Article B. (Breah)

My plans to build a derivative management program for a simulated company start with prioritizing a piece of the final paper each week up until submission. To create a simulated company that is multi-national with divisions in the U.S., Europe (Germany), and Japan, it is important to understand the various types of risk exposure that comes from doing business multi-nationally. A good way to evaluate risk exposure for the derivative management firm is to analyze other companies in the same industry which also operate in similar markets. Not only will this approach provide a picture of the current risk exposure in multi-national markets, but it will also help me understand the techniques and methods used to mitigate risk in this environment. Specifically, it is important to understand how to utilize derivatives to manage risk. One example of risk exposure for multi-national companies is foreign exchange risk. Foreign exchange risk is related to the potential for loss in a financial transaction due to currency fluctuations. Currency fluctuations not only impact the company itself but also its investors. Another example is interest rate risks. Both national and multi-national companies can experience interest rate risk resulting in an impact to fixed income securities. Hedging is a common risk management strategy in the stock market. An investor may hedge risk by using derivatives such as put options to protect an asset.
Although I am in the beginnings stages of building out a simulated derivative management firm, the beginning stage will likely be the most important as it is valuable to understand the risks that multi-national companies face. Once those risks have been identified, an appropriate risk management strategy can be implemented. The strategy will be dependent on not only the multi-national nature of the company but also its banking relationships in those countries and its pension plan exposures. Closer to week four and five of the course, the structure of the derivative management program will be developed as well as the application of option trading strategies as a method of portfolio insurance. At this time I have not encountered any problems.