A Study Of The Enterprise Exchange Rate Risk Management From The Financial Perspective

With the advent of economic globalization and the rapid development of China’seconomic, the competitiveness of China’s enterprises increased significantly. Theenterprise expands the scale of the direct foreign investment, and deepens the degreeof internationalization of the business obviously. Enterprises to go abroad to activelyparticipate in international competition, fluctuations in exchange rates is difficult toavoid, how to exchange rate risk management has become insurmountable issue’smultinational enterprises. Specially, the exchange rate risk of China’s enterprisesincreased significantly, after our country made the marketing-reform of RMB in2005.The transnational business thrust and pressure of the RMB exchange reform,highlighting the weak status quo of China’s enterprises exchange rate riskmanagement. Therefore, the strengthening of the exchange rate risk management isimperative.By combing enterprise exchange rate risk management concepts, basic theoriesand achievements, foreign exchange rate risk management theory is relatively mature,the study focused on the motivation of the exchange rate risk, impact factor, the riskmeasure Empirical research. China’s enterprises exchange rate risk of lagging behind,there is no complete theoretical framework of the exchange rate risk managementsystem, the enterprise-specific practice guidance is not strong.Then, articles specific analysis of the impact of the exchange rate risk oncorporate financial strategy, investment financing and operational management, taxplanning and income assessment of the importance of the exchange rate riskmanagement. The status quo of China’s enterprises exchange rate risk management,the necessity and urgency of enterprises to strengthen the management of exchangerate risk. From exchange rate risk management, the current situation of Chineseenterprises, Chinese enterprises exchange rate risk management weak awareness ofthe knowledge structure of the financial staff, expertise is limited, which restricts the exchange rate risk management practice.On this basis, the paper proposes three types of exchange rate risk managementtool options: to build rate risk early warning system, the use of external derivativefinancial instruments and the integrated use of internal methods. I first impact at homeand abroad on the exchange rate risk factor, combined with the status quo of China’senterprises exchange rate risk management, select the key indicators of the impact ofthe exchange rate risk of Chinese enterprises, and build risk early warning andmanagement of exchange rate risk early warning model. From influencing factors, themethod of selection, use and evaluation point of view, the use of external derivativefinancial instruments and the integrated use of internal methods exchange rate riskmanagement tools are described. That enterprises should overcome excessivespeculative thought, caution external derivatives; although the actual status of thedevelopment of China’s foreign exchange market is not business, weakening theinternal method of hedging effect, but the internal method is still China’s enterprisesagainst exchange rate risk is the most important way.Finally, a financial point of departure from the enterprises investing activities,financing activities and operations activities of the exchange rate risk managementcountermeasures to expect to give the exchange rate risk management practices toprovide a reference.