Pre-transaction risk and Report card: Difference between pages

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imported>Doug Williamson
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''Foreign exchange risk management''
A quantitative ranking of a financial institution’s level of service and customer responsiveness.


1.
The use of report cards is widely applied to measure financial institutions’ service levels.
 
Pre-transaction foreign exchange risk arises from needing to commit to a price before actually entering into transactions or commercial agreements.
 
For example, an exporter may need to publish a price list in the currency of its customers' local market.
 
Pre-transactional currency exposure also exists when an organisation tenders for a contract priced in a foreign currency, or where there are associated foreign currency costs, for example for materials, labour or other operational inputs.
 
Some practitioners do not identify pre-transaction risk as a separate class of risk, rather considering it to be a shorter-term type of economic exposure.
 
 
2.
 
The same as Contingent risk as applied to currency management.
 
 
Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.




== See also ==
== See also ==
* [[Contingent risk]]
* [[Key performance indicator ]]
* [[Currency risk]]
* [[Service level agreement]]
* [[Economic risk]]
* [[Translation risk]]
* [[Transaction risk]]


[[Category:Manage_risks]]
[[Category:Compliance_and_audit]]

Revision as of 09:46, 9 October 2013

A quantitative ranking of a financial institution’s level of service and customer responsiveness.

The use of report cards is widely applied to measure financial institutions’ service levels.


See also