Economic risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Link with Foreign exchange risk page.) |
imported>Doug Williamson (Add quote. Source: linked page.) |
||
| Line 1: | Line 1: | ||
1. ''Risk management'' | 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. | 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. | ||
| Line 6: | Line 6: | ||
2. ''Foreign exchange risk'' | :<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." | |||
:''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. | More narrowly, the risks above associated with changes in exchange rates. | ||
| Line 18: | Line 25: | ||
* [[Exchange rate]] | * [[Exchange rate]] | ||
* [[Foreign exchange risk]] | * [[Foreign exchange risk]] | ||
* [[Guide to risk management]] | |||
* [[Pre-transaction risk]] | * [[Pre-transaction risk]] | ||
* [[Transaction risk]] | * [[Transaction risk]] | ||
Revision as of 10:40, 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.
