Which metric examines the impact of the exchange rate when transactions occur between the buying organization and supply partners who use different currencies?

The quarterly Global Supply Chain Risk Report measures strategic logistical risks across industry sectors using four key risk metrics.

Which metric examines the impact of the exchange rate when transactions occur between the buying organization and supply partners who use different currencies?
A . Global sourcing risk
B . Supplier criticality
C . Supplier financial risk
D . Foreign exchange risk

View Answer

Answer: D

Explanation:

Foreign exchange risk measures the impact of currency fluctuations when conducting transactions in different currencies, affecting supply chain costs. [P-63]