Studies On The Application In The Enterprise's Risk Management With Derivatives Hedging

Finance derivation is the product of financial innovation. Its function lies in the risk abhorrer can turn the investment risk to the risk loving. It will enhance each swapper's effectiveness. The enterprises will face more and more risks with the finance Internationalization and they need the finance derivation to manage their risks.This paper embarks on the hedge basic principle which have made some explanations on the theory of exchange rate as well as its material conformation. We have proved enterprises may achieve the perfect hedge under complete market condition with derivatives hedging. We can use the cross hedging to dodge majority of risks in the finance even if in the undeveloped countries. If the policies allowed, and having the corresponding derivatives, we may use cross stock contract to manage the risks with the foreign stock market. In the modernized financial system, risk management ability already became the construction enterprise core competitive power, in the bank credit risks management, the using of the real options method might carries on the generalized analysis to the project risk and the income and then, effectively control credit risk.Finally, in association with the example of our country enterprise manage the exchange rate risk with the derivative at present, we have made the analysis to the enterprise credit risk management as well as the enterprise foreign loan risk management uses different derivatives, which have provided the model using the limited derivatives variety in the present situation to carry on the risk management.