Evaluarea expunerii firmelor la riscul valutar; consideratii generale (General remarks on the assessment of foreign exchange risk exposure of firms)

Arnaldo Mauri and Claudia Gabriela Baicu ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: The paper deals firstly with the assessment of nonfinancial firm’s risk exposure which has been deeply affected in the last two decades by the trend of market globalization and increased competition. In this new scenario we can note the weakening of the traditional separation between risks voluntary accepted by the firm as a chance to improve its profitability and risks which unavoidably lay on the overall business activity of the firm itself and have to be adequately covered by means of risk management. Secondly, within the frame of financial risks, particular attention is given to exchange rate fluctuations and to issues dealing with measurement and analysis of qualitative as well as quantitative aspects of foreign exchange risks affecting nonfinancial firms and chiefly those extensively involved in international activities. The focus then shifts to the assessment of foreign currency risk exposure by the firm as well as to managing foreign eschange risks and to the intruments and techniques involved.

Keywords: Risk; financial risk; foreign exchange risk; foreign exchange exposure; risk management (search for similar items in EconPapers)
JEL-codes: G28 G30 G32 (search for similar items in EconPapers)
Date: 2008-02-01
New Economics Papers: this item is included in nep-ifn and nep-rmg
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Persistent link: https://EconPapers.repec.org/RePEc:mil:wpdepa:2008-02

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