Economic risk

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.

2. Foreign exchange risk

More narrowly, the risks above associated with changes in exchange rates.

Also known as economic exposure.

See also

• Economic exposure
• Exchange rate
• Pre-transaction risk
• Transaction risk
• Translation risk