The Construction And Implementation Of The Exchange Rate Risk Management System Of Group A

With the globalization process, China's international status has been further improved, foreign trade further opened, and the economic external dependence increased. Besides, foreign exchange capital flows more frequently and foreign economic activities of enterprises are increasingly important to China's economy. At the same time, frequent exchange rate fluctuations also affect the normal business activities. With the deepening reform of the RMB exchange rate system, exchange rate fluctuations become one of the most important factors that affect foreign economic activities. Therefore, how to manage exchange rate risk becomes an urgent issue for enterprises to enhance their international competitive ability.Guided by comprehensive risk management theory and exchange rate risk management theory, and based on studies at home and abroad, this paper analyzes and studies the current exchange rate risk management in Group A, and summarizes the problems existing in the current exchange rate risk management of Group A. The paper considers that we need to construct the exchange rate risk management system of Group A. First of all, we should establish the goal of exchange rate risk management. Secondly, we should establish exchange rate risk management process in three ways(namely, risk identification, assessment and response), and combined with the perfection of Group A's organizational structure and information system,build exchange rate risk management system of Group A. Finally, we should improve Group A's exchange rate risk management system, by strengthening the introduction and training of talents, improving the regulatory mechanism and performance appraisal.This paper studies from the theoretical level and practical level. It can be found through this study that the exchange rate risk can't be completely eliminated, but is controllable. Certain methods of management can reduce the risk of exchange rate to make the risk to the lowest level and thus help to achieve the goal of sustainable development.The innovation of this paper is to construct Group A's exchange rate risk management system based on its industry characteristics, business characteristics and deficiency in its own exchange rate management together with its exchange rate risk management process, organizational structure and information system while improving its enterprise management system as a safeguard measure, to build applicable exchange rate risk system and implementation strategy, improve the exchange rate risk management level, and reduce the exchange rate risk, thus contributing to Group A's sustainable development, and providing reference for other similar enterprises in our country to avoid exchange rate risk, and ensure the long-term development.