The Research On Foreign Exchange Financial Product Risk Management In Hunan Branch, Bank Of China

As one of the commercial banks in China, Bank of China Hunan Branch was originally founded to be a professional bank of foreign exchange and trade, running and overseeing foreign exchange nationwide. Risk management of foreign exchange financing product is one of the core matters of Bank of China Hunan Branch. As a comprehensive and personalized service offered by Bank of China Hunan Branch, foreign exchange financing product is the necessary trend of Bank of China Hunan Branch's improving management skills and international competitiveness and has been gaining its importance within Bank of China Hunan Branch. Because of the complicated components of risks in foreign exchange financing product, the fast-changing international finance market, and the long-term foreign exchange control, risk management of foreign exchange financing product in China is relatively left behind. How to take precautions against and reduce risks in foreign exchange financing product and manage those risks effectively is a Bank of China Hunan Branch's problem badly in need of solution.This paper summarizes the background and research approach, and the theory of risks in foreign exchange financing product, discusses the research contents and skills of foreign exchange financing product risks, and then analyses the current situation of foreign exchange financing product and the related problems in its risk management, and further, the reasons behind. This paper analyses some foreign exchange financing products and concludes the identification and measurement, the solution and adjustment of some major foreign exchange financing products'risks, and then finally proposes the strategy and mechanism of foreign exchange financing product risk management.According to the current situation, this paper scientifically designs a practical set of strategy and mechanism of foreign exchange financing risk management, which the author believes to be boosting the consciousness of risk prevention and the management level and core competitiveness of Bank of China Hunan Branch. Its further implication is to broaden financial innovation of Bank of China Hunan Branch, and then incent more foreign exchange financing products to meet the needs of our society and customers.