COLLATION error during call storage procedures in mysql

when i tried to call specific storage procedure in mysql, i faced the below error
mysql> call DBname.StorageProcedureName();
ERROR 1253 (42000): COLLATION ‘utf8_general_ci’ is not valid for CHARACTER SET ‘latin1’

i have done a lot of search and all recommended to change character set and collation to UTF8, like below
character-set-server = utf8
collation-server = utf8_general_ci
Actually i worried about this solution as it may be affect data consistency specially if DB contain foreign_key ( ) My questions now: 1. there is any solution rather than changing character set and collation to UTF8 2. if not, what’s the risk if i change from to utf8. 3. what’s the best character set and collation, utf8 or latin