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Dear Sir,
I don’t know what the difference between economic risk and economic exposure. I read some resources which use term “Management of economic exposure” rather than “Management of economic risk”. It is really confusing.
Thanks for your help
They are really very much the same thing. Decisions are subject to changes in the economy – this is economic exposure. Once we try and identify the effects of different economic states, and their probabilities of happening, then we call it economic risk.
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