Research On Risk Management Of Hedging Business In Firm A

With the development of financial derivatives in recent years,the trading volume of futures is getting higher and higher.More and more physical enterprises,such as steel enterprises,coke enterprises,coal enterprises and energy and chemical enterprises,begin to use futures to hedge to avoid the price fluctuation risk of products or raw materials.However,in the process of enterprises participating in hedging,many risk problems are exposed and risk events occur frequently,which not only causes hedging failure,but also causes economic losses.Some enterprises choose to give up after a period of operation.In this paper,taking enterprise a as an example,the purpose of this paper is to put forward a set of risk management scheme of hedging business,to effectively identify and evaluate the risks in hedging business,and put forward the response plan and corresponding control activities,so as to improve the risk management level of enterprise hedging business.If we want to carry out the hedging business for a long time,it also urgently requires the enterprises that participate in hedging and intend to participate in hedging to strengthen the risk management of hedging business and constantly improve their business ability and knowledge level.In this paper,firstly,we analyze the risk management of enterprises by using the method of hedging and risk management in literature Framework,combined with the relevant futures theory and management theory,to solve the problem of hedging risk management,and research a set of scientific risk management program.In this paper,through the study of enterprise hedging risk management,innovative use of fuzzy analytic hierarchy process and fuzzy evaluation method for hedging business risk assessment.Through the understanding of hedging business and on-the-spot investigation,innovative measures such as coke point price and coke price balance table are put forward in the risk response.The first focus of this paper is how to identify and evaluate the risk of enterprise A’s hedging.This paper uses the literature analysis method and brainstorming method to identify the risks existing in enterprise a’s hedging business,and identifies five first-class risk factors: market risk,liquidity risk,credit risk,operational risk and model risk,And further refine to get 18 secondary risk factors,and then creatively use the fuzzy analytic hierarchy process and fuzzy evaluation method to qualitatively and quantitatively evaluate the risks existing in the hedging business.The risk level of each risk is obtained and explained.It is concluded that the risk level of hedging business is a major risk level,which needs to be actively responded and controlled by enterprise A.among them,market risk and operational risk are the two risks with the largest risk weight and risk degree.Through risk identification and assessment,it provides main reference for dealing with various risks in the later stage.The second is how to improve the level of risk management and deal with risk events.To deal with risks,we should refer to the risk assessment results and risk response costs at the same time,and select appropriate ways to deal with different risks.In the risk response,it focuses on the response to market risk and operational risk,and puts forward innovative measures such as coke point price trade and the application of coke price balance sheet.Combined with the internal environment optimization,management objective setting and control activity design,this paper puts forward suggestions on the risk management optimization in the hedging business of enterprise a,establishes the hedging risk management system of enterprise a,and effectively solves the problems of imperfect system,non-standard organization,weak risk awareness and unscientific strategy.