Explore BrainMass
Share

Explore BrainMass

    Managing Operating Exposure

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What would be the most important principles of managing operating exposure from the perspective of a financier?

    What are some examples (that are not Market Selection, Pricing Strategy, Product Strategy, Input Mix, Shifting production among plants, Plant location, raising productivity, Planning for Exchange Rate Changes, or Financial Management of Exchange Risk) of how companies employ these principles effectively?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:53 am ad1c9bdddf
    https://brainmass.com/economics/risk-management/managing-operating-exposure-599207

    Solution Preview

    The most important principles of managing operating exposure from the perspective of financier would be diversification. In order to manage the operating exposure risk, the company needs to diversify, be it in terms of operating cash flows or financing cash flows of the organization. Operating cash flows can be done by diversifying sales, production locations and sources of raw materials whereas financing cash flows can be diversified via raising funds from ...

    Solution Summary

    This solution discusses the principles of managing operating exposure from the perspective of a financier and provides examples of how companies are employing these perspectives.

    $2.19