Transaction risk


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Transaction risk

The risk of changes in the home currency value of a specific future foreign currency cash flow.

Transaction Exposure

In international trade, the risk that exchange rates will change after a company has agreed to a transaction but before it is accomplished, such that it adversely affects the transaction. For example, suppose an American company agrees to buy goods from a British company and settle the transaction in pounds. The American company has the transaction exposure that the pound will appreciate with respect to the U.S. dollar, causing the company to spend more dollars to buy the same number of pounds to be able to settle the transaction.
References in periodicals archive ?
At modeled, the focal T2, the consequences actor's use of a of the focal actor's fixed volume contract supply-side contract in its supplyside usage for its transaction increases exposure to its exposure to transaction risk are volume uncertainty in also analyzed its demand-side transaction.
HCC Global Financial Products (HCC Global) is launching a new line of business focusing on Mergers and Acquisitions' (M&A) Transaction Risk Insurance (TRI); namely Warranty & Indemnity (W&I), Tax Indemnity, and Contingent Risk Transfer Insurance.
Transaction risk is clearly measurable, and its effects are reported directly as gains or losses in operating income.
Citing transaction failures, unrealized strategic goals, damaged corporate reputations, and potential personal liability for corporate officers, a majority of study participants said more needs to be done to improve transaction risk processes, and that responsibility is increasingly being placed with the CDO.
The resulting package will provide customisable fraud screening technologies together with identity verification which can reportedly automate the transaction risk management process.
5 is a decision management platform that allows businesses selling online through call centres to centrally control and manage the transaction risk management system, according to the company.
Transaction risk concerns relatively short-term movements in exchange rates since trade agreements tend to be settled within six months.
take fees for evaluating reinsurance transaction risk, rather than a commission on the transaction;
Contributing to the concern over transaction risk is the fear of fraud.
A backdrop of improvements in refining sector fundamentals may help further reduce transaction risk by increasing near-term cash generation and reducing the need to fund deals with long term debt.
LONDON, April 8, 2010 /PRNewswire/ -- HCC Global Financial Products (HCC Global) announced today the launch of a new line of business focusing on Mergers and Acquisitions' (M&A) Transaction Risk Insurance (TRI); namely Warranty & Indemnity (W&I), Tax Indemnity, and Contingent Risk Transfer Insurance.
In his new role, he will be responsible for managing credit risk, interest rate risk, liquidity risk, transaction risk, compliance risk, strategic risk and reputation risk.
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