Research On Risk Diagnosis And Risk Control Of Hedging Business Of Zhongyuan Company

There are more and more smelting enterprises attempting to use a variety of derivative financial instruments to hedge market risk,in order to avoid the price risk of spot trading.The hedging business also exposes the company to new risks,if the hedging business is not properly controlled,it will bring huge losses to the enterprise.Therefore,it is necessary to study the risk of hedging business.In this paper,we do the research of the hedging business risk of the Zhongyuan smelting company,Through the diagnosis and analysis process,we found that there are many problems in Zhongyuan smelting company,such as unclear business sector,poor decision-making mechanism,unclear of the key control points,lacking of management measure,limited understanding of the hedging business as executives and short of good risk reporting an so on.On this basis,through the hedging business process of risk identification,risk list collection,and releasing questionnaire to analysis and assess risk,then decide the core risk of hedging business,including strategic risk,operation risk and market risk areas.At last,this paper puts forward some countermeasures which about improving the risk management framework,the risk exposure control and risk warning mechanism focused on the core risk.