Infrastructure and Pre-transaction risk: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
 
imported>Doug Williamson
(Add alternatives.)
 
Line 1: Line 1:
Infrastructure is the underlying physical and organisational framework which enables other useful activities.
''Foreign exchange risk management''


Physical infrastructure includes railways, roads, buildings, power, sanitation and telecommunications networks.
1.


Financial markets infrastructure includes payment systems, securities settlement systems and central counterparties.
Pre-transaction foreign exchange risk arises from needing to commit to a price before actually entering into transactions or commercial agreements.


Treasury operations infrastructure includes its framework of policies, procedures, reporting lines and other relationships.
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.


==See also==
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.
*[[EMIR]]
 
*[[Financial Market Infrastructure]]
 
*[[Financial stability]]
2.
*[[I&E]]
 
*[[Payments and payment systems]]
The same as Contingent risk as applied to currency management.
*[[Payment Systems Regulator]]
 
*[[Project finance]]
 
*[[Treasury operations]]
Also known as pre-transactional risk, pre-transaction exposure or pre-transactional exposure.
 
 
== See also ==
* [[Contingent risk]]
* [[Currency risk]]
* [[Economic exposure]]
* [[Transaction exposure]]
 
[[Category:Manage_risks]]

Revision as of 15:47, 17 March 2017

Foreign exchange risk management

1.

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