Operating exposure

Operating exposure

Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.

Operating Exposure

The extent to which a company is exposed to exchange risk and inflation risk. That is, operating exposure is the exposure to the risk that a change in an exchange rate or the inflation rate will negatively impact a company's revenue.
References in periodicals archive ?
It is more appropriate to measure exposure of their operating cash flows, and net cash flows to various currencies, known as FX operating exposure and FX Net cash flow (NCF) exposure respectively.
The rating is also supported by the company's relatively strong product diversification, both locally within the Kuwaiti market and in addition geographical diversification through the company's operating exposure outside of Kuwait.
With more operating exposure to these markets, which often come with capital controls and other complexities, treasurers face greater challenges in funding and risk management.
Furthermore, we reduce the average age of our fleet and concentrate our operating exposure in dry-bulk market segments that, in our view, enjoy somewhat better fundamentals with lower freight rate volatility.
Large differences in the investment responses of affiliates and local firms persist after including measures of operating exposure as controls.
Expands on the treatment of parity disequilibria to include exchange rate expectations that differ from parity and a project's operating exposure to currency risk
group's standalone fundamentals given the material operating exposure to
The present paper calculates various FX exposures for BAL like FX revenue and cost exposure, FX operating Exposure and FX equity Exposure, and explores the possibility of using more sophisticated hedging techniques like currency options and currency swap at Bajaj Auto Limited.
ATL does face operating exposure to Delta and its affiliates, which accounts for over 75% of total passengers and contributes to the high level of connecting passenger traffic.
Credit concerns center on ATL's operating exposure to Delta and its affiliates, which accounted for 76% of total enplanements in fiscal 2010; the high level (68%) of connecting or transit passenger traffic; and the expectation of moderate declines in coverage levels relative to past performance as a result of its plan of leveraging from both the general airport revenue and PFC hybrid credits.
While RCTC has limited transit operating exposure, it does have exposure to construction risk.
While nuclear operating exposure is a continuing risk, the likelihood of an extended, unplanned plant outage appears sufficiently mitigated by the above-industry-average historical performance of the Catawba and McGuire units.
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