| Abstract [eng] |
Foreign currency risk management is analysed in this Master thesis. Principal aim of the thesis is to analyse the measures for foreign currency risk management and, referring to the analysis of foreign currency risk in a company and the country, to justify the foreign currency risk management strategy using derivative financial instruments. Hypothesis was raised that the companies which duly assessed any possible foreign currency risk and which efficiently use the measures for foreign currency risk management, may reduce the risk of settlement and accounting. While the companies sell on international markets, settlements are received in various foreign currencies, which rates are rather different, therefore they encounter foreign currency risk and incur the losses related to foreign currency exchange. The foreign currency risk occurs in the result of fluctuation in foreign currency rates which may have both, the positive and the negative impact on financial results of the company. In order to realise the aim of the thesis, the classification of foreign currency risk is described along with the methods and the measures for risk management. Analysis of risk management of foreign currency exchange is conducted with regard to company “Grigiškės“, within the period from 2009 to 2014, according to the methods of sensitivity, change in value and historical simulation. In addition, it is analysed whether conclusions of transactions are significant for the management of foreign currency risk. Moreover, general international trade of the country along with export, import and the market of derivative financial transactions are analysed. According to the data of the company selected, sales income in various foreign currencies are estimated, foreign currencies selected in which the largest sales revenue is received as well as the risk related to fluctuation in such foreign currencies over the financial results is analysed. In addition to that, by means of historical simulation method, sales income is forecasted and derivative transactions are applied. Referring to the theoretical chapter, a foreign currency risk management model was formed, referring to which the companies may decide whether it would be beneficial for them to manage the foreign currency risk. If the company decides to manage the risk, the most acceptable and relevant management measures are then selected. Results of the thesis may be critical to the companies which plan to start export and import production, and also to the companies which are already in commercial relations with foreign companies. In the event of change of currency of a country, positive changes in international trade are forecasted. |
