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Exposure

ik-SPOH-zher /ɪkˈspoʊʒər/

nounC1GREGMAT

formalbusiness

The state of being subjected to something, especially something harmful or unpleasant; (in finance) the amount of money an investor stands to lose.

Can refer to physical vulnerability, public revelation, or, in finance, the degree of susceptibility to risk from a particular asset, market, or event.

The story behind the word. The word 'exposure' comes from the Latin exponere, meaning 'to put out, set forth, exhibit,' from ex- ('out') and ponere ('to place'). It entered English in the 17th century, initially referring to the act of laying something open or making it visible. The sense of being subjected to an influence or danger, and specifically its financial meaning, developed later, referring to the extent to which one is 'laid open' to potential loss.

Word relationships

Vulnerability: The state of being open to injury, or attack; 'exposure' is the state of being subjected to something, which can lead to vulnerability.
Susceptibility: The state or fact of being likely or liable to be influenced or harmed by a particular thing.
Risk: The possibility of loss; 'exposure' is the state of being open to that possibility.

Protection: The action of protecting, or the state of being protected.
Immunity: The ability of an organism to resist a particular infection or toxin.
Concealment: The action of hiding something or preventing it from being known.

Commonly confused with

Risk: 'Risk' is the possibility of loss. 'Exposure' is the amount or degree to which one is subject to that risk. You have exposure to a risk.

Word family

Expose (verb): To make visible, public, or vulnerable.

Collocations

market exposure
financial exposure
reduce exposure
limit exposure
currency exposure
risk exposure

Example sentences

"The bank sought to reduce its exposure to the volatile housing market by selling off some of its mortgage-backed securities." Financial risk
"Prolonged exposure to direct sunlight can increase the risk of skin cancer." Health and safety
"The scandal brought unwanted exposure to the celebrity, damaging her public image." Publicity

Memory hook

Imagine being EXPOSED to the elements, feeling vulnerable. Financial EXPOSURE means your money is vulnerable to market elements. EXPOSED to market elements.

When not to use

Do not use 'exposure' when referring to complete protection or immunity. It implies a state of being open to influence or harm.

Fun facts

In photography, 'exposure' refers to the amount of light allowed to reach the film or sensor, determining the brightness of the image.