Enterprise FX Risk Management Organization Establishment and Strategy Construction in Non-Financial Company: CG Company Case Study

• Main Authors: Che-Yu Lee, 李哲宇
• Other Authors: 林修葳
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/k833xy

碩士 === 國立臺灣大學 === 臺大-復旦EMBA境外專班 === 103 === Accompanying the liberalization trend for global trade and finance in 1980s, governments of major economies deregulated financial market. Such action leads non-financial enterprises to greater exposure to various financial risks, forcing them to seriously consider how much consequence they may bear with. Foreign exchange risk (also known as FX risk) is quite typically the major potential risk, regardless of whether or not a firm is a multinational enterprise. This thesis paper aims to explore how Case Company, which is in the non-financial small and medium-sized enterprise (SME) category, enhances managerial effectiveness in enterprise FX risk in the light of organization reconstruction and compensation scheme while facing FX fluctuation. This essay also aims to investigate the role play of new coming managers during organization reconstruction and how the reform procedure influences the enterprise FX risk management organization establishment. Finally, it analyzes the decision-making factors when deploying an FX hedging strategy, especially the operational hedging tools that best fit the business practice in cash inflow and outflow. This study concludes that risk management culture is the cornerstone for effectiveness in risk management. The establishment in management and organization designation is the pillar to success. The risk quantities tech is merely a tool to use. The key to sound risk management is positioning a right person in implementation and solid enterprise risk management culture. Moreover, information and communication are leading indicators to carry out risk management, and also influence the internal control. Monitor and feedback are the carry-on measures to risk control. Finally, identification, measurement and confrontation serve as the tactics to risk management. An effective management team should take actions that suit local conditions.