portfolio to investment grade securities with short term maturities and
by monitoring the credit risk and credit standing of counterparties.
Interest rate risk
Interest rate risk is the risk that future cash flows of a financial
instrument will fluctuate because of changes in market interest rates.
The Company is exposed to interest rate risk through its cash and cash
equivalents and its portfolio of short-term investments. The Company
mitigates this risk through its investment policy that only allows
investment of its excess cash resources in investment grade vehicles
while matching maturities with the Company's operational requirements.
Fluctuations in market rates of interest do not have a significant impact
on the Company's results of operations due to the short term to maturity
of the investments held.
Currency risk is the risk that future cash flows of a financial
instrument will fluctuate because of changes in foreign exchange rates.
The Company is exposed to currency risk from the purchase of goods and
services primarily in the U.S. and the U.K. The Company mitigates its
foreign exchange risk through the purchase of foreign currencies in
sufficient amounts to settle its foreign accounts payable.
Balances in foreign currencies at March 31, 2008 are as follows:
|SOURCE Oncolytics Biotech Inc.|
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