Case Study On Foreign Exchange Risk Management Of JCCL Company

With the rapid development of China's international trade,the two-way exchange rate of RMB exchange rate and the frequent changes in the international settlement currency exchange rate,China's import and export enterprises face the risk of foreign exchange has become more complex.At present,some import and export enterprises have not updated business philosophy,focus on the use of the more common way to avoid exchange rate risk on,although reduce the company's foreign exchange risk to a certain extent,but not the foreign exchange risk management system of long-term effective formation in the enterprise,how to identify and assess the risk,risk construction of exchange rate risk management system of import and export enterprise's long-term healthy development is of great significance.In this paper,the basic concepts of foreign exchange risk are defined,and based on the theory of foreign exchange risk management framework,the related literature at home and abroad are reviewed.This paper expounds the actual operation situation and daily business activities of JCCL import and Export Corporation,and analyzes the present situation and characteristics of the foreign exchange risk faced by JCCL import and export corporation.The problems and causes of the foreign exchange risk management measures of JCCL Import&export company,as well as the current foreign exchange risk management measures were summarized and analyzed.It is found that the existing problems of foreign exchange risk management in JCCL company are as follows;the foreign exchange risk management objectives are not clear,and the measurement and evaluation of foreign exchange risks are not enough.The reason is mainly due to foreign exchange risk management system is not perfect and lack of foreign exchange risk management evaluation and incentive measures.Based on the above research conclusion,this paper puts forward the corresponding improvement suggestions,such as through the clear objectives,strengthen the management of foreign exchange risk,foreign exchange risk prediction and measurement,different risk coping strategies,improve the foreign exchange risk management system construction,set up the exchange risk evaluation and incentive system theory method combining with practice,strengthen the JCCL Import&export company,foreign exchange risk control,promote the healthy and sustainable development of the company,improve the comprehensive risk management system of the company.This paper promoted the JCCL import and Export Corporation foreign exchange risk management and the company's long-term healthy development,with rich experience and examples of the theory of risk management,and provide some reference to other import and export enterprise foreign exchange risk management.