Research On Risk Management Of YN Copper Company Based On Copper Price Fluctuation

Cooper price volatility, significantly correlated with the production and management benefits of copper enterprises, is primarily influenced by market environment at home and abroad. As a result, individual enterprise will suffer difficulties in altering the fluctuation trend of cooper price by dint of independent efforts. Only by taking positive risk control measures, mastering the variation rule of cooper price, optimizing industrial chain, designing a reasonable industrial layout, and hedging against risks through financial instruments, will the enterprise be able to lessen or evade the business risks resulting from cooper price volatility to achieve stable business income and maximum profits.As the copper price fluctuations, companies are facing more and more opportunities, challenges and all kinds of risks also. Different companies are facing different risks, but basically there are operation risks and financial risks.This article will combine YN copper company, Including Copper industry chain,the use of copper resources, the distribution and production situation, and copper upstream downstream demand, supply, inventory and so on forth analysis for copper prices affect the important factors.This paper is based on YN copper’s Degree of Operational Leverage and Degree of Financial Leverage, Research YN copper company, the management risk and financial risk characteristics, and combined with the specific situation of YN copper company operational methods countermeasures to avoid the risk of fluctuations in copper prices bring to the company.