This document provides an overview of foreign exchange risk management. It discusses the different types of risks involved in cross-border transactions, including translation risk, transaction risk, economic risk, political risk, and interest rate risk. It then explains how derivatives like forward contracts, futures, options, currency swaps, and interest rate swaps can be used to manage currency risk and reduce the volatility of cash flows. The goal of risk management is to reduce uncertainty, lock in costs and revenues, and allow for better business and cash flow forecasting.