Risk Management, PRMIA

I think once the market is more mature, we will find corporates using this more than others. For example, a telecom project company theoretically located in Belgium, importing equipment from US, China, Euro Zone and India to execute a contract in Africa where expenses are paid in US$ and future revenues partly in US$ and partly in local currency may have to be hedged, especially if it is a long term contract, for multiple currency risks.
Am I on the right track here?

Derivatives would often be required for managing currency risks (like in the example mentioned by Mr.D.N. Prahlad). But would buying exotic options be required? or would buying plain vanilla options suffice?
Note: exotic options are largely popular because they are much cheaper than the plain vanilla variety.
I think exotic options have a utility from a risk management perspective. I have mentioned two types of situations where exotic options may be useful in risk management.
However, I am inclined to think that plain vanilla options are often wrongly (from a risk management perspective) substituted by the cheaper exotic options.
But may be I have missed some of the uses of exotic options!Are there more types of situations where exotic options may be used for the purpose of risk management?

not sure if it's relevant to comment anymore here, but there are, to my way of thinking, a couple of misconceptions embedded here:
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(1): a confusion between "buyer" and "seller", with "end-user" and "bank, or dealer". The end-user, hedger, does not only "buy" options----the vast majority of hedges are combinations of bought and sold options. So, of course, end-user/hedgers will be sellers of exotic options.
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(2): In fact, the more agressive hedgers will frequently SELL more (in terms of notional), in the any option combination, than is purchased---whether this is as part of a "leveraged forward", "target notional structure", seagull combination, or a variety of other common structures----the underlying "principle" of structuring seems to be buying an improved initial "protection" rate in a structure, by taking on negative leverage, in the form of being net short options of some sort.
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(3): One of the most comment uses of exotic options is SELLING a Knock-IN barrier,as part of a collar, or other put/call combination. This can be relatively low-risk hedge, conservative risk management---very much like hedging with forwards, by any metric, on the spectrum of possible hedges including everything from FX forwards, vanilla options, exotic options.
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(4): A much more "agressive", or risky hedge, might involve buying a very cheap knockout option---agressive and risky, if the barrier is placed in the in-the-money direction, making the hedge disappear when the option is ITM and you REALLY need it (usually, HIGHLY likely to disappear). I resist even calling such an option purchase a "hedge" or "risk management" (tho some clients insist). But it is clearly more risk and LESS of a hedge then the very common put/call combinations involving sold knock-in options, mentioned above.