Agenda
In this session, you'll build a complete understanding of currency risk management—a critical topic for managing international business operations and passing your Advanced Financial Management exam.
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In this lesson
- 0:00 Currency Risk Management Introduction
- 0:15 Understanding Exchange Rates Fundamentals
- 0:19 Three Types of Currency Risk Explained
- 0:26 Interest Rate Parity Theory Overview
- 0:32 Purchasing Power Parity and Inflation
- 0:38 Hedging Techniques for Foreign Currency
About this lesson
You'll start with exchange rate fundamentals, then explore the three main types of currency risk: transaction, economic, and translation. The session covers two essential theories that explain exchange rate behaviour: interest rate parity (linking exchange rates to interest rates) and purchasing power parity (linking exchange rates to inflation). You'll finish by learning practical hedging techniques to protect against foreign currency exposure in real business scenarios.
Duration: 1m
Transcript
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