Study On Emergency Mechanism Of Exchange Rate Risk Of Foreign-related Enterprises Based On ISM-ASAS Theory

With the integration of global economy, the number of enterprises who engaged in international trade is growing, the scale of international trade is also expanding. The riskier positions of exchange rate increases, the RMB is appreciate during two-way fluctuation. The RMB exchange rate fluctuation not only affects export enterprises also affect import enterprises. This leads to the number of exposure to exchange rate risk is also increasing. Because of the fluctuations and uncertainty of exchange rate increases, State-owned assets supervision and administration asked the central enterprises to establish a perfect emergency management system to deal with 63 kinds of risk. These risks include exchange rate risk. At present, the majority of Chinese enterprises lack exchange rate risk management, the emergency mechanism of exchange rate risk is not perfect. Under such circumstances, it has a very important meaning to foster and improve the capacity to deal with economic emergency events. Also, constructing Scientific and reasonable emergency mechanism system of exchange rate risk has a realistic significance. In this paper, the influence factor and the relations between factors is studied, these qualitative factors are quantified reasonably. This is helpful to complement the theory of exchange rate risk and its emergency management.Emergency mechanism of exchange rate risk of foreign-related enterprises in China is discussed in this paper. This paper analyzes emergency mechanism of exchange rate risk of foreign-related enterprises in light of exchange rate risk management theory、emergency management theory、system engineering theory and attribute mathematics theory. The article mainly includes three parts:(1)Based on practical researches and research literatures, this paper establishes an index system for emergency mechanism of exchange rate risk. According to the theory of emergency management,we divided the emergency mechanism of exchange rate risk of foreign-related enterprises into five parts: prevention mechanism, alert mechanism, response mechanism, control mechanism and recovery mechanism. The five mechanisms are first grade indicators. Select 16 second grade indicators according to the influential factors of exchange rate risk management.(2)Firstly, the Paper analyses the relationship between the influence factors. Based on ISM, establish a sketch map of interpretative structural modeling of emergency mechanism of exchange rate risk. On the basis of it, the objective weights of all the indexes are determined. Secondly, the subjective weight of indexes is confirmed by AHP. Finally, a method of combination weights is used to represent the weight of indexes.(3)With the theory of attribute mathematics, ISM-ASAS is adopted here to build an evaluation model of emergency mechanism of exchange rate risk. Then, a numerical example is analyzed by using Matlab. From the above findings, the last chapter puts forward some suggestions on how to perfect the emergency mechanism of exchange rate risk of foreign-related enterprises in China.In this paper, it made an attempt in exploration of the overall situation of the emergency mechanism of exchange rate risk by comprehensive using of the theory of ISM-ASAS. The constructed hierarchical chart by using ISM can help enterprises know internal factors of the emergency mechanism of exchange rate risk and their influence magnitude. It is helpful to improve veracity and validity of the decision-making. This provides a scientific basis for improving the capacity for emergency management.