Study On The Application Of Derivative In Z Company Risk Management

Nearly half a century,the derivatives has been playing an important role in risk management,in product innovation,market scale and actual application,developmental steps never stop,especially in European and American firms the position in this field is very obvious.Started relatively late in domestic,enterprises in the use of derivatives for risk management problems occur frequently.Nowadays,market exchange rates,interest rates and commodity price are fluctuating violently.So how to use derivatives more effectively to avoid market risks in the future? With this question,this article focuses on the subject of Z company with launching a study.In this paper,on the basis of reviewing relevant research results at home and abroad scholars,firstly the article has carried on the summary the theoretical basis,including the basic theory of derivatives,enterprise risk management theory and the use of derivatives for risk management related theory;Then the text analyzed the Z company's main market risk,assessed the effect of the risk of operating costs,on the basis,the author summarized the purpose of derivatives for hedging;And then analyzed Z corporation's application of derivatives related conditions,including each of the actual operation situation of derivatives contracts,to achieve overall profit and loss situation and whether finishing the hedging purposes;Finally,the article demonstrated the direct financial consequences of derivatives and risk aversion,finding that the application hasn't positive effect on the formation finances,exacerbate the instability of financial indicators,at the same time empirical systemic risk and overall risk after application are greatly increased,the actual application effect is not ideal.Combining the above research,the paper puts forward the application measures of Z company's derivatives for strengthening risk management at the end.