(2011-10-01) España Calderón, Luis Fernando; López Casella, Julián Andrés; Berggrun Preciado, Luis
In a global environment, companies
face exchange rate risk due to their
need to conduct operations abroad.
Risk must be managed properly in
order to identify its impact on the viability
and profitability of companies
and to take proper risk mitigating
measures. The case study under
review analyzes the exchange rate
risk of an exporting company in order
to determine the probable impact of
this risk. Furthermore, it discusses
various alternatives to mitigate currency
risk.
