UNIVERSIDAD AUTÓNOMA DE NUEVO LEÓN

FACULTAD DE CONTADURÍA Y ADMINISTRACIÓN

MATERIA: COMPRENSIÓN DE TEXTOS EN INGLÉS

MAESTRA: ENRIQUE GUTIÉRREZ ACOSTA

ALUMNO: NALLELY CAROLINA VALLE SÁNCHEZ

MATRÍCULA: 1997559
TITLE: INTERNATIONAL FINANCE AND EXCHANGE RATE RISK

AREA: International finances

CITATION: Villegas, E. G. (2014). INTERNATIONAL FINANCE AND EXCHANGE RATE RISK. Quipukamayoc, 17(33), 43.

URL: https://revistasinvestigacion.unmsm.edu.pe/index.php/quipu/article/view/4549

PERSONAL COMMENTS (200-250 words) In the field of international finance, it is essential to understand and
manage the risks associated with commercial and financial operations
▪ What did you learn from the study? carried out globally. International finance covers a broad spectrum of
▪ How might you apply the information in activities, from international trade and foreign investment to currency risk
your academic training? management and hedging financial exposures. One of the main aspects to
consider in international finance is exchange rate risk, which arises due to
▪ How this study relate to your field
fluctuations in the value of foreign currencies in relation to the local
of preparation?
currency.
With this study I understood the importance of strengthening risk
management in organizations, especially in the context of international
finance, where financial risks, such as exchange rate risk, can significantly
impact the economic and financial situation of companies. In this sense,
public accounting plays a fundamental role in providing the tools and
knowledge necessary to identify, evaluate and adequately manage these
risks. The ability to manage financial and operational risks, as well as social,
environmental and ethical risks, has become increasingly crucial in a
dynamic and globalized business environment. Furthermore, the
implementation of effective internal control systems is essential to
 mitigate risks and ensure the continuity and development of organizations
in the financial sector and beyond. Ultimately, risk management not only
helps protect businesses from potential threats, but can also turn them
into opportunities for growth and innovation.

SUMMARY The article highlights the importance of strengthening risk management in

INTRODUCTION (1-3 sentences) the senior management of organizations, since they face various types of
▪ give a brief introduction to give the nec risks, both inherent to the business and external, social, environmental and
cessary background to the study and ethical. In addition, it highlights the risk exposure of Financial Institutions
due to the increase in the volume of operations and services they provide.
state its purpose.
▪ Why was the study conducted?
▪ What was it about?

The main subjects of the article are organizations, especially those that
PROCEDURES / METHODOLOGY (3- operate in the financial and international sphere. Various aspects related
5 sentences) to risk management in these organizations were measured, including
▪ describe the specifics of what this Financial Risks, Operational Risks, Social and Environmental Risks, and
Ethical Risks.
study involved
▪ Who were the subjects?
▪ What was measured?
▪ What was being compared?

FINDINGS / RESULTS (3-5 sentences) The information provided in the article is very useful as it highlights the
▪ Discuss the major findings and result importance of properly managing risks in the financial and international
s. sphere. Furthermore, it highlights the importance of establishing a solid
▪ How useful or significant is this? internal control system that allows organizations to efficiently manage the
risks associated with their operations and business activities.
▪ What did the author say about it?
CONCLUSIONS (3-5 sentences) Highlights the importance of adequately managing risks in the financial and
▪ Summarize the researcher’s international sphere, as well as the need to establish a solid internal
conclusions. control system to efficiently manage these risks. The importance of
▪ What was the major outcome of the identifying and managing financial, operational, social, environmental and
ethical risks is highlighted to ensure the sustainability and long-term
study?
success of organizations.

Lexicon: (10 words) 1. Riesgos financieros: Se refiere a las posibles pérdidas que una entidad
puede enfrentar debido a cambios adversos en los mercados financieros,
como fluctuaciones en los tipos de cambio, tasas de interés, precios de
activos, entre otros.

2. Tipo de cambio: Es el precio relativo de una divisa en términos de otra

divisa. Las fluctuaciones en los tipos de cambio pueden afectar el valor de
los activos, pasivos y flujos de efectivo de una empresa que opera en
diferentes monedas.

3. Gestión de riesgos: Es el proceso de identificar, evaluar y mitigar los

riesgos que enfrenta una organización. Involucra la implementación de
estrategias para reducir la probabilidad de pérdidas y maximizar las
oportunidades.

4. Control interno: Son las políticas, procedimientos y prácticas

establecidas por una organización para garantizar la eficiencia operativa, la
confiabilidad de la información financiera y el cumplimiento de las leyes y
regulaciones aplicables.

5. Evaluación del riesgo: Es el proceso de determinar la magnitud y la

probabilidad de pérdidas potenciales asociadas con eventos o condiciones
específicas. Ayuda a las organizaciones a priorizar los riesgos y asignar
recursos para su gestión.

6. Oportunidades internacionales: Son las posibilidades de expansión y

crecimiento que surgen de la participación en mercados extranjeros, la
adquisición de empresas internacionales o la exportación de productos y
servicios.

7. Imperfecciones del mercado: Son las condiciones que dificultan la

eficiencia del mercado, como la asimetría de la información, los costos de
transacción y las barreras de entrada. Pueden dar lugar a comportamientos
irracionalmente subóptimos por parte de los agentes económicos.

8. Instituciones financieras: Son organizaciones que facilitan la

intermediación entre los ahorradores y los prestatarios, como bancos,
sociedades de inversión, compañías de seguros y fondos de pensiones.

9. Equilibrio y desarrollo del sector: Se refiere a la estabilidad y crecimiento

sostenible del sector financiero, que es crucial para la salud económica
general y la capacidad de las instituciones financieras para cumplir con sus
funciones y responsabilidades.
10. Normas técnicas y profesionales: Son los estándares y directrices
establecidas por organismos reguladores y organizaciones profesionales
para guiar la conducta y las prácticas de los profesionales en un campo
específico, como la contabilidad, la auditoría y la gestión de riesgos.

1. Financial risks: Refers to the possible losses that an entity may face due
to adverse changes in financial markets, such as fluctuations in exchange
rates, interest rates, asset prices, among others.

2. Exchange rate: It is the relative price of one currency in terms of another

currency. Fluctuations in exchange rates can affect the value of assets,
liabilities and cash flows of a company that operates in different currencies.

3. Risk management: It is the process of identifying, evaluating and

mitigating the risks faced by an organization. It involves implementing
strategies to reduce the probability of losses and maximize opportunities.

4. Internal control: These are the policies, procedures and practices

established by an organization to ensure operational efficiency, the
reliability of financial information and compliance with applicable laws and
regulations.

5. Risk assessment: It is the process of determining the magnitude and

probability of potential losses associated with specific events or conditions.
Helps organizations prioritize risks and allocate resources for their
management.

6. International opportunities: These are the possibilities for expansion and

growth that arise from participation in foreign markets, the acquisition of
international companies or the export of products and services.

7. Market imperfections: These are the conditions that hinder market

efficiency, such as information asymmetry, transaction costs and entry
barriers. They can give rise to irrationally suboptimal behavior on the part
of economic agents.

8. Financial institutions: These are organizations that facilitate

intermediation between savers and borrowers, such as banks, investment
companies, insurance companies and pension funds.

9. Sector balance and development: Refers to the stability and sustainable

growth of the financial sector, which is crucial to the overall economic
health and the ability of financial institutions to fulfill their roles and
responsibilities.

10. Technical and professional standards: These are the standards and
guidelines established by regulatory bodies and professional organizations
to guide the conduct and practices of professionals in a specific field, such
as accounting, auditing and risk management.
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