Meaning of the word "foreign exchange risk" in English

What does "foreign exchange risk" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

foreign exchange risk

US /ˌfɔːr.ɪn ɪksˈtʃeɪndʒ rɪsk/
UK /ˌfɔːr.ɪn ɪksˈtʃeɪndʒ rɪsk/
"foreign exchange risk" picture

Noun

1.

the risk that changes in exchange rates will affect the value of a company's assets, liabilities, or operating results

Example:
Multinational corporations often face significant foreign exchange risk.
Hedging strategies can help mitigate foreign exchange risk.
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