Constructing Financial Derivative Risk Monitoring System From The Perspective Of Accounting

Financial derivative, as the product of financial innovation, is universally welcomed by the participants in the financial market for its unique functions of avoiding risk and hedging, however, this sharp "double-edged sword" brings much more risks into the financial market while avoiding risks. Consequently, the study of risk supervision is very necessary.Though the development of financial derivative market currently in China is still in its initial stage, from the trend of financial internationalization, financial derivatives business will inevitably work up in our country. In order to give full play to the positive role of financial derivative, its corresponding risks have to be reduced as low as possible. Since accounting plays a very important role in the risk supervision of financial derivative, it is quite necessary and meaningful to study risk supervision of financial derivative in the perspective of accounting.Based on the analysis of financial derivative's features, the thesis has summarized all risks which may produce. Since the causes of financial derivative risks lie in asymmetry of information disclosure, financial liberalization, transaction beyond financial statements, insufficient management and weak internal control, the control and supervision of its risks should begin from these factors. Based on the above study, the thesis begins to cover the construction of financial derivative risk monitoring system and risk evaluation index system from the perspective of accounting. The construction of risk monitoring system should first begin with the enterprises'risk management strategies, combining the enterprises'risk management strategy closely with the related accounting events and taking the strategies as the basis of accounting's next task. Then the monitoring process in the angle of enterprises'accounting should be clarified. In addition, establishing and perfecting the internal control system of the enterprises, setting special internal auditors and strengthening skill training and professional ethics education of accounting staffs are also indispensable to perfect the financial derivative risk monitoring system under the accounting perspective. Finally, the thesis sets up financial derivative risk assessment index system through combining financial derivative properties with accounting features. Then the thesis introduces the way of using AHP to determine index weight. The construction of risk monitoring system and risk evaluation index system will facilitate the fast and effective control and supervision of the enterprise accounting for the financial derivative risks.