【文章內(nèi)容簡介】 manage. 3. Economic Exposure refers to the possibility of the change in the present value of the firm’s expected future cash flows due to unexpected change in exchange rates. It is also called operating exposure and measures the change in the present value of the firm, which results from any change in future operating cash flows caused by unexpected changes in exchange rates. Pantzalis et al (2020) defines Operating exposure as the effect of unexpected changes in the exchange rate on cash flows associated with a firm’s real assets and liabilities. Various empirical studies in the last few years have attempted to provide insights into the practices of risk management. These empirical studies provide managers with information on the current practices of other firms. This kind of information is valuable since it allows managers to critically assess and analyze their own strategies. Cohen/Wiseman (1997) explains which questions should be asked in this context: “ Companies should use this information to assess where they stand in parison with other panies.” The survey findings do not necessarily represent best practice, but they should be used as a guide for a treasury to pare itself with other anizations and ask: “Where are we similar? Where are we different? Should we be different? What should we do about it?” (Martin Glaum, 2020) Survey Responses and Analysis An 11 Question survey was mailed to CFOs of 250 Indian corporations in 2020. A cover letter to the CFOs explained that the purpose of the survey was academic and that all responses would be kept anonymous and confidential. A total of 98 usable responses were received, for a response rate of 40%. The industries that the 98 panies operate in are shown in Table 1. Table 1 Respondent Companies by Industry Industry No of Companies Percent Banks 35 FMCG 13 IT 16 Manufacturing 25 Others 9 Total 98 Questions 13 sought information with regard to the understanding of the transaction, translation, and economic exposure. Translation exposure was understood pletely by 55% of the respondents, 31% understood it substantially, with only 13% understanding it partially. As far as transaction exposure is concerned 53% of the respondents indicated that they understood it pletely, 34% understood it substantially, with only 10% understanding it partially. Economic Exposure is defined as an exposure to fluctuating exchange rate which affects a pany’s earnings, cash flow and foreign investment. Economic exposure which depends on the specific characteristics of the pany and its industry was understood pletely by 44% of the respondents, substantially by 41%, and partially by 15%. No pany felt that they do not understand economic exposure pletely. This could probably be attributed to the fact that most of the panies while entering into any economy, first study the economy. This could also be due to the fact that panies are aware that their receivables and payables are affected by international economic factors like wars, oil and natural resources. The survey does show predictable results about a significant majority of the respondents understanding all the 3 different kinds of exposure. Questions 46 sought information on whether or not the firms covered themselves against transactions, translation, and economic exposures. As far as translation exposure is concerned, only 28% of the respondents covered themselves pletely, 31% substantially, 33% partially, and 6% not at all. Translation exposure is not perceived to be impor