Margin risk, in the context of FX risk management, refers to the impact of unexpected currency fluctuations on operating profit margins. A Europe-based exporter to the United States could see operating profit margins decrease in the event of a sharp EUR appreciation, as it would be forced to slash USD selling prices in order to maintain market share. A hard definition of margin risk management would be a stated policy of not having operating margin decrease by more than 5%, for example, due to the changes in exchange rates. Currency management, including pricing in foreign currencies and effective hedging programs, can go a long way in protecting a firm from FX-induced margin risk.