Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?

exams IIA-CRMA-ADV V1 IIA-CRMA-ADV exam 0 Comments

Which of the following is the most effective strategy to manage the risk of foreign exchange losses due to sales to foreign customers?
A . Hire a risk consultant.
B . Implement a hedging strategy.
C . Maintain a large foreign currency balance.
D . Insist that customers only pay in a stable currency.

Answer: B