- exposure
- The vulnerability that is attached with an investment. There are different types of exposures that an investment may have, such as, currency exposure or economic exposure. For example, currency exposure is the proportion of your share portfolio that is at risk to exchange rate fluctuations. Financial Services Glossary
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exposure ex‧po‧sure [ɪkˈspəʊʒə ǁ -ˈspoʊʒər] noun• Our unrivalled advertising exposure gets fast results.
• The convention is important because of the money and media exposure it could bring to the city.
2. [countable, uncountable] when a newspaper article or a television programme tells people the truth for the first time about something bad, or someone who has done something illegal, dishonest, or wrong:• Other exposures such as the irregular payments to Graham Roberts have come largely from the Press or club officials.
3. [countable, uncountable] FINANCE the amount of money that a bank lends to a customer, and which the bank therefore risks losing:• Rising government debt will be a worry, though most of us will be concentrating on dealing with our own borrowing exposures.
• Concern over exposure to the troubled group hit the banking sector, with Barclays the main casualty.
4. [countable, uncountable] FINANCE the amount of money an investor risks losing if their investments do badly, for example on the stockmarket:• Some companies overlook the fact that foreign exchange exposures rise when the contract is signed.
• The fund is aiming to raise $200 million from banks looking to reduce their exposure to Eastern Europe.
when an investment or part of an investment is at risk because it is in a foreign currency and will be affected by changes in the value of that currency:• The dollar price is hedged into sterling to avoid currency exposure.
• Importers are always looking for ways in which currency exposures can be minimised.
ˈdebt exˌposure [countable, uncountable] FINANCEwhen a company's or country's financial situation is at risk because it is owed a lot of money that may not be repaid:• The bank made provisions against just over 50 percent of its South American debt exposure, in line with Bank of England guidelines.
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The total amount of credit committed to a borrower or a country. Effectively, the total amount at risk in the case of default. Banks can set rules to prevent overexposure to any single borrower. In trading operations, exposure is the potential for running a profit or loss from fluctuations in market prices.* * *
exposure UK US /ɪkˈspəʊʒər/ noun► [C or U] FINANCE the risk of losing money, for example through a loan or investment, or the amount of money that might be lost: exposure to sth »The bank had relatively little exposure to subprime mortgages, which are issued to people with weak credit histories.
»If they do walk away from the deal their total exposure is around £40 million.
→ See also CURRENCY EXPOSURE(Cf. ↑currency exposure), CREDIT EXPOSURE(Cf. ↑credit exposure), DEBT EXPOSURE(Cf. ↑debt exposure), EXCHANGE RATE EXPOSURE(Cf. ↑exchange rate exposure)► [U] the state of possibly being affected by something such as a substance or influence: exposure to sth »The city's youths need more exposure to positive role models.
► [U] MARKETING the amount of public attention that someone or something, especially an advertisement or product, receives: »The overall winner is guaranteed lots of media exposure.
get/gain exposure »The product is being advertised to bloggers with the hope of getting more exposure.
► [U] FINANCE the act of investing in something: exposure to sth »Her clients wanted more exposure to the energy and real estate sectors.
Financial and business terms. 2012.
