Taiwan Small and Medium Enterprises Foreign Exchange Risk Management

• Main Authors: Ying-Chun Chen, 鄭世禮
• Other Authors: chih-Hsing Hung
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/98127861232674738507

碩士 === 國立高雄第一科技大學 === 金融研究所 === 103 === under the liberalization of global multinational trading system, international funds flow rapidly and the fluctuating range of the exchange rate changes frequently. It is difficult for companies to control the management beforehand when facing the currency risk. Thus, in addition to noticing the trend of international economic and understanding the trade relations between countries, companies should take aggressive measures to avoid unnecessary currency risks. To entrepreneurs, in order to respond to the impact of currency exchange to their companies, a correct concept of currency risk management should be established. Entrepreneurs can’t neglect the risk which currency could make just because they are failed to predict or make profits from the currency exchange. It is very dangerous not to manage a risk while knowing there is one. When facing the global phenomenon of rapid currency exchange, entrepreneurs should establish an efficient way of the currency hedging. First, currency hedging policies should be made. In order to avoid giving too much authorization and too many flexibilities to the financial department, currency hedging policies are made by the board of directors and executed by the financial department. The benefits of doing this are to control the currency loss to a certain degree and the financial department can take action without under any pressure. Secondly, companies should train the staff of financial department to build up the ability of currency risk management and make them know exactly about the currency risks their company has.