Research On Export Risk Management Of Manufacturing Foreign Trade Enterprises

From the international financial crisis in2008, the uncertainties of international trade increased significantly, many companies suffered due to frequent trading risk and losses. These lessons remind us that strengthening trade risk prevention research to improve the risk prevention abilities and skills are very necessary and urgent. China is a big manufacturing country, many manufacturing companies have their own import and export right, they can engage in the international trade business by themselves. The risks has its own characteristics when manufacturing enterprises encountered during export business, it is necessary to be noticed specially. This article say it is the manufacturing foreign trade enterprises (MFTE) that specialized in export business of the company in manufacturing enterprise, products exported by these foreign trade companies are mainly manufactured by other factory of Group, therefore business affected greater impact by foreign exchange rates, raw material price fluctuations.In this paper, we take CL company as a sample, study three main risks existed in manufacturing foreign trade enterprises:exchange rate risk, raw material risk, management risk. in order to solve these risks, the paper referred the experience when domestic and foreign outstanding enterprises prevent the risks, then this paper presents the corresponding solution after collated main risks of CL company:first, build a model of enterprise risk management ERM, then elaborate main prevention methods on exchange rates, raw materials, and management risks, finally propose to use PDCA cycle to manage the risks in a closed-loop.When this paper describes risk theory and research on how to manage risk prevention, it used standard analytical methods, and used some of the existing concepts, theories and financial instruments, such as the concept of risk management, utility theory, game theory, Porter’s five forces model, PDCA cycle and so on.This paper was written from manufacturing foreign trade enterprises (an important branch of in China’s foreign trade), chose a typical enterprise CL company to study. Analyze the main risks which could be existed in the export on this kind of enterprise carefully, and finally try to find solutions against these risk. This paper is also available for reference when other similar enterprises prevent export risks.