A Model Of Controlling And Managing The Impact Of Foreign Exchange Exposure On Corporate Profits

July21,2005, the PBC announced that China began to implement a market-based, with reference to a basket of currencies, managed floating exchange rate system. Foreign exchange risk began to concern for our export-oriented enterprises. Since the foreign exchange management system reform, the RMB appreciation is growing, as of July21,2009, four years of appreciation of the RMB exchange rate reform as much as15.77percent, export-oriented enterprises, especially exporter’s exchange rate risk should not be ignored. At the same time, the pace of China’s economic integration into the world more and more quickly, according to customs statistics, China’s exports in2009totaled12,016.7billion, for the first time surpass Germany as the world’s largest exporter. Therefore, fluctuations in exchange rates increased with the growing scale of foreign trade under the double impact, the Chinese export-oriented corporate profits sensitive to exchange rate changes are also constantly increased, and this would have been subjected to financial crisis and sharp drop in the Chinese outbound orders more bad enterprise, how foreign exchange exposure on the profits of control within certain limits have become an important issue that can not be ignored.In this paper, export-oriented enterprises in China’s foreign exchange exposure study, from a financial point of view of the profit to the enterprise caused by foreign exchange risk exposure, foreign exchange exposure on the profits of construction impact management control model. Learn from past financial engineering model and econometric research on the foreign exchange risk measure based on the accounting profits into foreign exchange risk measurement problems, to control the impact of foreign exchange exposure on the profits to control foreign exchange risk, to achieve the use of financial science view the purpose of solving financial problems. The model consists of the causes of model and process control model of two sub-models, through the concept of the foreign exchange exposure, constitutes a factor in its interest of influence of the production process in depth analysis has been the main to business activities, financing activities, investment activities. In the three financial activities based on the causes of foreign exchange exposure analysis model, the final play of the profit impact of foreign exchange exposure on the cause, summarized the past, the role of foreign exchange management experience; In addition, based on the profit impact of foreign exchange exposure on the analysis of all factors, the Company foreign exchange management is divided into six levels, the establishment of foreign exchange exposure process control model to explore how foreign exchange exposure arising in the process of taking a variety of methods to control the impact of foreign exchange exposure on the profits to reduce exchange rate fluctuations on the erosion of corporate profits. Meanwhile, author’s experience of foreign exchange management in Neusoft Corporation is engaged in the actual, on one hand, which make the model applied to practice. On the other hand, the actual foreign exchange management efficiency is improved to achieve the combination of theory and practical results.