A senior manager/executive with day-to-day oversight of Enterprise Risk Management. The CRO coordinates the company's risk management efforts, explain risks and controls to senior management and the board, and make recommendations.

Outcome of an event affecting objectives.

Measure that is modifying risk.
NOTE 1 - Controls include any process, policy, device, practice, or other actions which modify risk.
NOTE 2 - Controls may not always exert the intended or assumed modifying effect.

The financial impact of an organization from undertaking activities with an uncertain outcome. The cost of managing risks and incurring losses.

The risk associated with currency fluctuations, either devaluations or appreciation.

For example, with Canadian and US dollar at parity (i.e. C$1 = US$1) a Canadian buys a US$ 10,000 bond, due in one year at 5% annual interest. In one year, in US$ the redeemed bond + interest will be $10,500. However, if over the same period the US currency devalued by 5%, (for this example from $1.00 to $0.95) the final value in Canadian dollars will be $9,975. (based on $10,500 - 5%). There was a net loss in Canadian dollars due entirely to currency exposure.

At the level of governments, central banks, large institutional holders and multinational firms, these risks become very large quickly.