The Research On The Managerial And Control Model Of The Exchange Rate Risk In International Project Contracting Enterprises

Overseas International Project Contracting Enterprises are the national "going out" the vanguard of the brigade in countries overseas economic strategy plays an important role in such enterprise industry characteristics, very high dependence on foreign, particularly sensitive to changes in exchange rates. However, since the exchange rate reform in2005, the RMB has been going on cumulative appreciation of25%, had a serious impact on China’s foreign Contracting Enterprise. In this condition, this paper selected foreign contracted engineering firms as a research object to exchange risk as the subject, its control mode to help overseas project contracting companies to reduce losses caused because of the exchange rate risk. Through AB enterprise case analysis, This paper introduces AB enterprise exchange rate risk management and control mode. In this paper, on this basis, in the context of faster appreciation of China’s foreign contracted engineering firms should adopt positive measures to prevent and control the exchange rate risk. Combined with AB experience in the management and control of the Company, based on the status quo of China’s foreign contracted engineering firms, production and operation characteristics of its exchange rate risk management, trading risk and economic risk facing enterprises have raised a variety of effective measures to protect against exchange rate risk.The first part is introduction, ask questions, describes the significance of this paper, the research mentality and the frame; the second part is the literature review, sorted on the exchange rate risk control and foreign project contracting enterprise exchange rate risk management theory, it has made the summary to the former research; the third part is the theoretical research on exchange rate risk management of foreign project contracting enterprises, expounds the foreign engineering contracting business mode and the characteristics, analyzed the formation mechanism of exchange rate risk of foreign project contracting enterprises, put forward suitable foreign project contracting enterprise exchange rate risk control model; The fourth part introduces the operation model and characteristics of case of company AB, describes the case enterprise from the appreciation of the renminbi against the dollar since the exchange loss, because US dollar exchange rate fluctuations and the exchange rate risk management, puts forward the necessity and urgency of risk management, introduces the method of exchange rate business case; The fifth part is the focus of this paper, combined with the third chapter for the mechanism and control method of forming the exchange rate risk for international project contracting enterprises proposed, detailed formation mechanism and control mode of exchange rate risk case to analyze the enterprise, introduces the business case for the exchange rate risk and active attack, active management, taking financial strategy under the premise of positive, strengthen the internal and foreign funds, foreign currency assets, responsible for management, the use of external financial products management of exchange rate risk, greatly weakened because the exchange rate losses caused by exchange rate fluctuations, effectively guaranteeing the project performance expected return; The sixth part is the conclusion part, the case enterprise exchange rate risk control model and puts forward some suggestions for improvement, in order to avoid exchange rate risk of foreign project contracting enterprises work benefit.This paper mainly includes the following innovations and contributions:This paper is based on the author’s work experience results, the analysis was based on theoretical and practical basis, hoping to establish and improve the exchange rate risk management model to provide some help for the foreign project contracting enterprises, but also for contracting foreign enterprises to explore and improve enterprise risk control to pave the way.This article from the international project contracting enterprise industry characteristic is analyzed, the analysis of the mechanism of formation of exchange rate risk based this kind of enterprises, in order to emphasize the enterprise monetary fund matching as the guidance, strengthen the enterprise internal financial management to reduce the exchange rate risk expected revenue impact on the project. On this basis, the new hedging instruments according to the current financial institutions to provide, presents several effective methods to avoid exchange rate risk.Combining with the theory of further analysis of case enterprise exchange rate risk management system, and puts forward some improvement opinions, with a large number of data and examples of the basic constructs the control mode of a foreign project contracting enterprise exchange rate risk, with a strong operational and reference.