The maximum loss suffered from a default by a counterparty.
Similar financial termsAccounting exposure
The change in the value of a firm's foreign currency denominated accounts due to a change in exchange rates.
Risk of adverse effects on a firm's financial statements that may arise from changes in exchange rates.
Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate.
Degree to which exchange rate changes, in combination with price changes, will alter a company's future operating cash flows.