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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Economic Risk
Hi john, we have dealt with hedging transaction risk but is there anything the financial manager can do to hedge against economic risks?
Many thanks John. I really appreciate your help over the last 2 months
considering john isnt here yet and its just 3 hours to the exam the answer is u probably move out of the country facing economic risk and move into good countries with good economies.
You can’t actually hedge against economic risk, but you might be able to take some measures to protect against it (for example, taking out insurance against customers not paying, or demanding payment in advance from customers).