Key control indicator and Offshore: Difference between pages

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(KCI).
1.


A measure derived from a risk budget and key risk indicators, for the purposes of control.
The siting of a currency asset in a location other than the country of which the currency is the domestic currency.


For example, a holding of Japanese yen in the United States (which would also be known as 'Euroyen').


== Example ==
A Inc operates in the capital goods sector and regularly makes tenders in foreign markets. The tenders are based on foreign exchange rates prevailing at the time of bid but there is risk in the tenders which is difficult to hedge because there is uncertainty over whether the tenders will be accepted.


2. ''Verb.''


A Inc measures the number of bids outstanding and other key factors including the volatility of the currency pairs involved in the tenders to produce an overall measure of risk for tenders. The risk in tenders is then given a budget for overall risk, which is managed by the tendering team and their treasury colleagues.
To offshore means to relocate a business - or part of a business - to another jurisdiction, often one where operational costs are lower.


A Inc converts this budget to a key control indicator, adding up maximum exposure to any one currency pair, adjusted for volatility (and time) to meet the risk budget requirements.
 
3.
 
The term is also used in the context of transactions with a company resident in a tax haven, or about a company itself resident in a tax haven.




== See also ==
== See also ==
*[[Risk budget]]
* [[CNH]]
* [[Key]]
* [[CNY]]
*[[Key risk indicator]]
* [[Euro]]
*[[Key performance indicator]]
* [[Euromarket]]
* [[Finance vehicle]]
* [[Offshore fund]]
* [[Onshore]]
* [[Reshore]]
* [[Tax haven]]


[[Category:Identify_and_assess_risks]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Financial_products_and_markets]]

Revision as of 07:52, 13 May 2020

1.

The siting of a currency asset in a location other than the country of which the currency is the domestic currency.

For example, a holding of Japanese yen in the United States (which would also be known as 'Euroyen').


2. Verb.

To offshore means to relocate a business - or part of a business - to another jurisdiction, often one where operational costs are lower.


3.

The term is also used in the context of transactions with a company resident in a tax haven, or about a company itself resident in a tax haven.


See also

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