CSPub, a subsidiary of Canada Specialization Providers (CSP), is expanding into Asia and experiencing FX exposure. They have generated $8.5 million in revenue and $1.8 million in profits. The Canadian dollar-Singapore dollar exchange rate is forecasted to fluctuate within a range of US$0.75-0.786. The Singapore dollar is pegged to a trade-weighted basket of currencies and has a strong correlation with the US dollar. CSPub’s cost structure is changing with Singapore operations. They need to estimate and manage their future currency exposure and develop FX risk management strategies. Unmanaged FX exposure could lead to significant losses, but effective hedging strategies can protect profits.