MANAGEMENT

Detailed explanation-1: -Currency risk, or exchange rate risk, refers to the exposure faced by investors or companies that operate across different countries, in regard to unpredictable gains or losses due to changes in the value of one currency in relation to another currency.

Detailed explanation-2: -What Is Currency Risk? Currency risk, commonly referred to as exchange-rate risk, arises from the change in price of one currency in relation to another. Investors or companies that have assets or business operations across national borders are exposed to currency risk that may create unpredictable profits and losses.

Detailed explanation-3: -Asset exposure refers to the possible risk of a change in the value of an asset held by an entity due to a change in foreign exchange rates. This is an inherent risk that can not be avoided by an entity that indulges in foreign currency transactions.

Detailed explanation-4: -Also known as currency risk, FX risk and exchange-rate risk, it describes the possibility that an investment’s value may decrease due to changes in the relative value of the involved currencies. Investors may experience jurisdiction risk in the form of foreign exchange risk.