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Translation Risk

   Also found in: Wikipedia 0.01 sec.
Translation Risk
The risk of changes in the reported home currency accounting results of foreign operations due to changes in currency exchange rates.

Accounting Exposure
The risk that a company may suffer a reduction in value because a change in exchange rates reduces the value of its accounts or assets denominated in foreign currencies. That is, if a particular currency in which a company has some assets denominated decreases in value, the value of those assets also decreases with respect to the company's main currency. See also: Foreign exchange risk.


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Crimson's translation risk management processes have received official Notified Body endorsement and are patent pending.
Crimson's translation risk management processes have received official Notified Body endorsement and are patent pending.
Given that the dollar fell 13% against sterling last year coupled with an expected further 8% fall this year, currency translation risk will more than likely weigh on investors' minds when looking to invest in blue chip stocks.
 
 
 
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