Currency Risk Factors for XYZ Corporation

During the recent economic downturn, XYZ Corporation, which operates internationally, faced significant currency risk as it received revenues in multiple currencies. As a currency manager, you are tasked with assessing the different currency risk factors that impact XYZ Corporation's financial performance. Discuss the various currency risk factors that could affect the corporation's cash flows and overall profitability. In your response, include explanations of at least three different types of currency risk and provide examples to illustrate their effects.