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What is the exact meaning of 'exposure' here?

English translation: foreign exchange risk

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GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
English term or phrase:foreign exchange exposure
English translation:foreign exchange risk
Entered by: Trada inc.
Options:
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14:15 Oct 14, 2004
English to English translations [PRO]
Bus/Financial - Business/Commerce (general)
English term or phrase: What is the exact meaning of 'exposure' here?
The intent of this Policy is to guide and direct the reporting and management of foreign exchange exposures generated by all the Company’s entities, to minimize the impact of foreign exchange rate changes on cash flows and profitability expectations.

Exposure has numerous meanings. Which one is relevant here? Thanks in advance.
chopra_2002
India
Local time: 21:02
foreign exchange risk
Explanation:
-
Selected response from:

Trada inc.
Canada
Grading comment
Thanks to all of you.
4 KudoZ points were awarded for this answer



Summary of answers provided
4 +5foreign exchange risk
Trada inc.
5explanation
Richard Benham
4Transactions involving foreign exchange.
Syeda Tanbira Zaman
3 +1vulnerabilities
Clauwolf


  

Answers


23 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
what is the exact meaning of 'exposure' here?
vulnerabilities


Explanation:
:)

Clauwolf
Local time: 12:32
Specializes in field
Native speaker of: Native in PortuguesePortuguese
PRO pts in category: 16

Peer comments on this answer (and responses from the answerer)
agree  Deborah Workman: Yes, I would say "vulnerability" in the singular. The extent to which the company is vulnerable to fluctuations (up/down) due to changes in exchange rates.
9 hrs
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26 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): +5
what is the exact meaning of 'exposure' here?
foreign exchange risk


Explanation:
-

Trada inc.
Canada
Specializes in field
Native speaker of: Native in FrenchFrench
PRO pts in category: 12
Grading comment
Thanks to all of you.

Peer comments on this answer (and responses from the answerer)
agree  danya: exposure to forex-related risks
7 mins
  -> thank you

agree  nlingua
47 mins
  -> thank you

agree  Asghar Bhatti
1 hr
  -> thank you

agree  Dorene Cornwell
5 hrs
  -> thank you

agree  Kardi Kho
9 hrs
  -> thank you
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24 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
what is the exact meaning of 'exposure' here?
Transactions involving foreign exchange.


Explanation:
The policy provides a guideline for minimising the impact of rate change, which effects bussiness.

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Note added at 33 mins (2004-10-14 14:49:40 GMT)
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In 2001, the United States\' net debt to the rest of the world jumped to $2.3 trillion, a level double that recorded in 1999. Much of the increase reflects the new borrowing undertaken by the country to finance its mounting current account deficit. A third of the change, however, can be traced to a simple accounting effect—the impact of a rising dollar on the value of U.S. assets held abroad.



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Note added at 36 mins (2004-10-14 14:52:06 GMT)
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It is the \"unpredictability\" to which a bussiness is exposed when it invoves FOREX transactions.

Syeda Tanbira Zaman
Local time: 21:02
Native speaker of: Native in BengaliBengali, Native in HindiHindi
PRO pts in category: 4
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3 hrs   confidence: Answerer confidence 5/5
what is the exact meaning of 'exposure' here?
explanation


Explanation:
"Foreign exchange exposure" actually means the extent to which one will be affected (for good or ill) by changes in exchange rates. It includes risk, as aubonmot has pointed out, but also the potential to make profit. Here, the company is apparently trying to reduce its riks, but this, or course involves also reducing any potential to profit from favourable forex movements.

The point is here that "exposure" does not always have negative connotations. It just means the possiblity of making a profit or loss from something. You could equally well find a statement like "XYZ Corp is bullish about the widget market, and is seeking to increase its exposure to that sector".

Richard Benham
France
Local time: 16:32
Native speaker of: Native in EnglishEnglish
PRO pts in category: 15
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