Economic risk: Difference between revisions
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imported>Doug Williamson (Add quote. Source: linked page.) |
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:<span style="color:#4B0082">'''''Reponses to economic risk'''''</span> | ::<span style="color:#4B0082">'''''Reponses to economic risk'''''</span> | ||
:"... the response to changing exchange rates... is likely to be as much about managing the commercial relationship with customers over a long period, as about immediate action in the financial markets." | ::"... the response to changing exchange rates... is likely to be as much about managing the commercial relationship with customers over a long period, as about immediate action in the financial markets." | ||
:''Guide to risk management - economic risk - The Treasurer's Handbook.'' | ::''Guide to risk management - economic risk - The Treasurer's Handbook.'' | ||
Latest revision as of 12:29, 26 August 2020
1. Risk management.
Broadly, the risk associated with changes in exchange rates, local regulations or business environment, which could disadvantage the company’s long-term economic model or favour the services or products of a competitor.
This type of exposure is very difficult to mitigate.
- Reponses to economic risk
- "... the response to changing exchange rates... is likely to be as much about managing the commercial relationship with customers over a long period, as about immediate action in the financial markets."
- Guide to risk management - economic risk - The Treasurer's Handbook.
2. Foreign exchange risk.
More narrowly, the risks above associated with changes in exchange rates.
Also known as economic exposure.
