Management of Foreign Exchange Exposure of the Selected Company

Ing. Jinnuo Wang

Master's thesis

Anotácia:

The aim of the thesis is to propose an effective way of managing the foreign exchange exposure in selected company.The main structure of this paper is as follows: the first part is a systematic explanation of foreign exchange exposure and its related theories, and the definition of foreign exchange exposure, types of foreign exchange risk, and basic methods of managing foreign exchange risk. The second part analyzes the current status of foreign exchange risk management of B&O group, focusing on the B&O group's trading exposure and economic exposure to major foreign currencies such as RMB, USD, GBP and CHF from 2016 to 2021, indicating the sensitivity of the B&O group's foreign currency cash flows under different exchange rate scenarios. The third part provides recommendations for the B&O group to hedge its foreign exchange risk based on the results of the previous paper. Finally, the main conclusions of the whole paper are sorted out.

Abstract:

The aim of the thesis is to propose an effective way of managing the foreign exchange exposure in selected company.The main structure of this paper is as follows: the first part is a systematic explanation of foreign exchange exposure and its related theories, and the definition of foreign exchange exposure, types of foreign exchange risk, and basic methods of managing foreign exchange risk. The second part analyzes the current status of foreign exchange risk management of B&O group, focusing on the B&O group's trading exposure and economic exposure to major foreign currencies such as RMB, USD, GBP and CHF from 2016 to 2021, indicating the sensitivity of the B&O group's foreign currency cash flows under different exchange rate scenarios. The third part provides recommendations for the B&O group to hedge its foreign exchange risk based on the results of the previous paper. Finally, the main conclusions of the whole paper are sorted out.

Keywords

Foreign exchange risk, foreign exchange exposure management, economic exposure, transaction exposure.

Jazyk práce: English

Datum vytvoření / odevzdání či podání práce: 30. 6. 2022

Obhajoba závěrečné práce

• Obhajoba proběhla 26. 8. 2022
• Vedúci: Ing. Jana Šimáková, Ph.D.
• Oponent: prof. Ing. Daniel Stavárek, Ph.D.

Silesian University in Opava

School of Business Administration in Karvina

Master programme / odbor:
Economics and Management / Business Economics and Management