The Research On Risk Management Based On Copper Trade For Tianhai Corporation

Nowadays, China economic runs rapidly, which pushes copper market ahead.Copper resource is mainly distributed overseas, whereas China becomes the biggestcopper consuming market. The annual gross copper consumption is so huge that theinland factory's outlet can not reach the desired demand of China market. Copperimportation increases rapidly. However?besides the prosperity, China also facesincreasing risks in copper market?At present, the attention should be paid more andmore on the risk control and risk management has become the focus of the coppertrade. It has important influence to study the risk management in copper trade.Through analyzing various risks in copper trade and by risk managementtechnique?We find that policy risk, economic risk and market risk are most importantrisks in copper trade?The relative risk solutions are developed accordingly and a setof risk management system is established, which can help company to reach demandof overall risk management. Good solution can make inspected influence only bygreat implementation. We prevent and control the risk fully by construction of thesystem and risk responsibility, etc.We hope to decrease the risk in copper trade of Nanfang company by analyzingthe risk took place in the copper trade and establishing the full risk management.Meantime, this study can also provide information and reference for the copper tradecompany in China?This will also help them to manage the risk in trade and preventthe lost.