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Currency Risk as a Managerial Variable: Business Management Approaches in Import?Export Organizations
Subject area: Science,Engineering and Technology · Area of research: Business Management
DOI: https://doi.org/10.64388/IREV8I11-1714629
Abstract
Currency risk is traditionally addressed as a financial exposure to be mitigated through hedging instruments and accounting techniques. However, for import–export organizations operating across multiple currencies, exchange rate volatility extends beyond financial reporting and directly shapes pricing, margin stability, sourcing decisions, and strategic growth choices. This article reframes currency risk as a managerial variable embedded in executive decision-making rather than a peripheral financial concern. Drawing on business management theory and executive practice, the study examines how currency risk influences operational coordination and strategic control in import–export organizations. It argues that conventional finance-centric approaches are insufficient to capture the organizational and behavioral dimensions of currency exposure. Instead, effective management of currency risk requires integration across finance, operations, and commercial functions, supported by executive judgment and governance mechanisms. The article develops a managerial framework that positions currency risk as a continuous input to decision-making related to pricing, volume planning, supplier selection, and market expansion. By emphasizing performance measurement, margin resilience, and long-term value creation, the framework highlights how executives can transform currency volatility from a source of instability into a managed strategic constraint. The study contributes to the business management literature by offering an original perspective on currency risk as a core element of managerial control in import–export organizations.
Keywords
Business Management; Currency Risk; Import–Export Organizations; Executive Decision-Making; Exchange Rate Volatility; Pricing Strategy; Margin Management; Risk and Resilience
References
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How to cite this paper
@article{1714629,
author = {Yasin Gunal},
title = {Currency Risk as a Managerial Variable: Business Management Approaches in Import?Export Organizations},
journal = {Iconic Research And Engineering Journals},
year = {2025},
volume = {8},
number = {11},
pages = {2530-2540},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1714629.pdf},
abstract = {Currency risk is traditionally addressed as a financial exposure to be mitigated through hedging instruments and accounting techniques. However, for import–export organizations operating across multiple currencies, exchange rate volatility extends beyond financial reporting and directly shapes pricing, margin stability, sourcing decisions, and strategic growth choices. This article reframes currency risk as a managerial variable embedded in executive decision-making rather than a peripheral financial concern. Drawing on business management theory and executive practice, the study examines how currency risk influences operational coordination and strategic control in import–export organizations. It argues that conventional finance-centric approaches are insufficient to capture the organizational and behavioral dimensions of currency exposure. Instead, effective management of currency risk requires integration across finance, operations, and commercial functions, supported by executive judgment and governance mechanisms. The article develops a managerial framework that positions currency risk as a continuous input to decision-making related to pricing, volume planning, supplier selection, and market expansion. By emphasizing performance measurement, margin resilience, and long-term value creation, the framework highlights how executives can transform currency volatility from a source of instability into a managed strategic constraint. The study contributes to the business management literature by offering an original perspective on currency risk as a core element of managerial control in import–export organizations.},
keywords = {Business Management; Currency Risk; Import–Export Organizations; Executive Decision-Making; Exchange Rate Volatility; Pricing Strategy; Margin Management; Risk and Resilience},
month = {May},
doi = {https://doi.org/10.64388/IREV8I11-1714629}
}