| Abstract [eng] |
Ladygienė, Živilė. (2007) Currency risk managament in enterprise. MBA Graduation Paper: Kaunas Faculty of Humanities, Vilnius University. 61 p. SUMMARY Keywors: currency, currency exchange rate, currency risk, currency risk managament, hedging instruments. The object of a scientific research – currency exchange risk management. Tasks: 1) to systematise the factors influencing currency exchange risk; 2) to assess the level of risk in enterprise; 3) to analyze modern hedging methods and means aimed to control currency exchange rate risk and determine the possibility of their application in enterprise; 4) to proffer suggestion how enterprise can manage currency risk. Choosed currency exchange rate risk management model gives conditions to realistically estimate currency exchange rate risk, choose adequate hedging instruments and forecast financial results for an enterprise. This model covers all the stages of the management cycle of currency exchange rate risk. Using this model made: currency exchange balance and calculation of open currency exchange positions for determining the risk; quantitative measurement variance/covariance method for measuring risk; choosing hedging means and instruments based on terms. It allows enterprise to measure the risk, choose adequate risk management instruments, forecast financial result and cash flows of the enterprise. The results of currency exchange rate risk managing in enterprise were that damage of rate risk was 10 times smoler when not managing the risk. |
