In a word: instability. FX movements can quietly erode your profits and make it harder to run your business.
Pricing customers can be difficult because you don't know what your costs will be in your home currency. Build in a big buffer, and you risk losing the deal; price it tight, and you risk losing money.
Forecasting and budgeting often become less reliable because next quarter’s supplier bill is a moving target. Your P&L can depend more on FX rates than on your business's actual performance. This makes cash flow planning harder and forces you to react instead of plan ahead.
Hedging helps you keep your profits steady and gives you peace of mind. It lets you lock in prices in advance and budget more accurately. This way, you can focus on running your business instead of worrying about the market.