International Balkan And Near Eastern Social Sciences Congress
Risk Management In Business Management
Disiplin:
Risk Management,Corporate Finance,International Finance
Konu:
Risk Management,Corporate Finance,International Finance
The exchange rate risk is defined as positive or negative changes in the value of local currencies against foreign currencies by certain factors.In particular, the exchange risk management that we face is the whole of the activities that are carried out in order to reduce or eliminate exchange risk within the enterprise.With the developing world economy, the transition to the flexible exchange rate system has led companies operating internationally to face exchange rate risks as a result of fluctuations in exchange rates.The exchange rate risk does not only affect foreign trade companies, it also affects local and even individuals and organizations that do not trade with currency.This situation forces to take various measures to protect against the exchange rate risk.The purpose of this study is to identify the effects of the currency risk that will be faced due to transactions with foreign currency on and the methods to reduce this risk and the methods of application of these methods.According to the data obtained in the application, the perceptions and attitudes of the enterprises regarding currency risk management have been assessed and recommendations have been made.The exchange rate risk is defined as an affirmative or adverse change of local current values to foreign currency with varioous factors.exchange rate risk management especially occurs in foreign trade firms are all of the operation to minimize or absolutely destruct exchange rate risks, consisting in firms.with the developing world economy, especially after free exchange rate system in adopted, the international corporations faced arising from fluctuating exchange rates.The exchange rate risk not only threatens the corporations which import and export, but also the domestic firms even those people and organizations who do not deal with foreign exchanges.This situation forces the corporations to take measures to be protected from foreign exchange risks.The aim of this study is to find out the effects of exchange rate risks to firms and to expos techniques to minimize this risk and the way to put into practice them.with the results of this application there are made sum up the situation and determined firms behaviors and perception to exchange rate risk adn solution manual was proposed how to make for exchange rate risk.