Economic risk: Difference between revisions

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imported>Doug Williamson
(Link with Foreign exchange risk page.)
imported>Doug Williamson
(Add quote. Source: linked page.)
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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.  
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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.
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* [[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.


See also