Business angel and Currency risk: Difference between pages

Revision as of 11:09, 2 October 2013

The risk that arises from a change in currency rates.

This can take the form of:

a receipt/payment of more or less home currency than expected when a transaction is settled (transaction risk)
a change in asset/liability values in a balance sheet, profit /loss in an income statement (translation risk), or
a change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).

A more complex area of risk concerns contingent, or pre-transaction risk.

Also known as Currency exposure or Foreign exchange risk.

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-A business angel investor uses their personal disposable finance and business or professional experience to invest in the growth of a small business, generally in start-up or early stage.
+The risk that arises from a change in currency rates.
+This can take the form of:
+#a receipt/payment of more or less home currency than expected when a transaction is settled (transaction risk)
+#a change in asset/liability values in a balance sheet, profit /loss in an income statement (translation risk), or
+#a change in competitiveness as rates change relative to buyers, suppliers or competitors (economic risk).
+A more complex area of risk concerns contingent, or pre-transaction risk.
+Also known as Currency exposure or Foreign exchange risk.
-Angel investors can make investments on their own or as part of a syndicate.
 == See also ==
-* [[Venture capital]]
+* [[Contingent risk]]
-* [[Crowdfunding]]
+* [[Cross-currency interest rate swap]]
-* [[MCT]]
+* [[Foreign exchange risk]]
+* [[Transaction exposure]]
+* [[Translation exposure]]
-===Other links===
+==Other links==
-[http://www.treasurers.org/node/9426 Two-fifths of SMEs that seek funding are rejected, Sally Percy, The Treasurer September 2013]
+[http://www.treasurers.org/node/5281 Currency risk, Will Spinney, ACT 2009]