Shipping Enterprise Financial Risk Management Study

Shipping is an industry of high risk with low return. Owing to the industry characters and the long period protection of the planned economic, domestic shipping industry must be affected by the entry to WTO heavily. The gap to the international superior shipping companies is tremendously deep which lies in the following aspects: the small capital scale, the weak capability of withstanding risk because of the narrow business scope, and the unreasonable structure and high cost in raising capital deriving from the imperfect capital market ,etc. Under this circumstance, it is very necessary to manage the financial risk. In this article, shipping company is appointed ocean shipping company.This article contains six divisions:Foreword introduces the article's researching background, some risk management disquisitions at present time, the new ways and the significance to study financial risk management of shipping company.Chapter â…  introduces the theory of risk, risk management and financial risk management. It also gives out the definitions of risk, risk management and financial risk, which basic of my opinion.Chapter â…¡ analyzes financial risk's characters of shipping company. Basic on the characters, it analyses the kinds of financial risk. It is classified by capital logics and fund movements.Chapter â…¢ describes financial management actuality of shipping company and financing risk management of shipping company.Chapter â…£ analyzes international financing's characters and the goal of risk management. It mainly discusses foreign exchange risk and interest rate risk management. Then it discusses the available measures to keep those risks away.Chapter â…¤ integrates hereinbefore description to table a proposal to improve the internal environment of shipping company's financial risk management. There are two main aspects: founding expert financial risk management institution and establishing financial forecast index which adapt to shipping company.On the guide of system and synthesis view, this article presents some advanced proposes to manage shipping company's financial risk. It mainly aims at international financial risk including foreign exchange risk and interest rate risk. Because foreign exchange risk and interest rate risk are very important for shipping company.