Risk sharing is a contractual arrangement in which the buyer and seller agree to “share” or split currency movement impacts on payments between them. If the two firms interested in a long-term relationship based on product equality and supplier
reliability and not on the whims of the currency markets, a cooperative agreement to share the burden of currency risk management may be in order.
Risk sharing is the process of creating and selling assets with risk characteristics that people are comfortable with and then using the funds acquired by selling these assets to purchase other assets that may have far more risk.