Accounting exposure, also known as translation exposure, is the risk that a company's financial statements can be affected by exchange rate fluctuations when the company has foreign subsidiaries or international dealings.
Currency risk, also known as exchange-rate risk or foreign exchange risk, arises from the fluctuation in the exchange rate between two currencies, impacting the value of investments or transactions made in foreign currencies.
Understanding and Managing Risks Associated with Uncertain Exchange Rates.
Transaction exposure refers to the risk that a firm's exposure to exchange-rate fluctuations will impact the value of anticipated cash flows from a transaction when the contractual obligation is settled.
