Study On Foreign Exchange Risk Management To Improve Of Yesheng International Energy Co. Ltd

Foreign exchange risk refers to in a given period economic activity of an organization, country or individual, such as foreign economic activity, trade, finance, foreign exchange reserves management and service etc., due to can not estimate the foreign exchange risk in advance, result in the value of foreign currency assets and foreign currency debt increasing or decreasing. In the paper foreign exchange risk refers to foreign exchange risk of enterprise organization specifically.Foreign exchange risk always exists in import and export business, especially with the opening of current account, it is the rapid growth foreign exchange risk in import and export business. It affects the structure of assets and liabilities, cash flow, profit, which affect the firm’s financial soundness and long term strategy to be bound together in a common cause, the survival and development of enterprises. Healthy foreign exchange risk management can not only help enterprises avoiding risks, but also adjust the proportion of assets and liabilities of enterprises, improve and enhance the quality of corporate assets, optimize the structure of corporate assets and thus enhance the overall value of the enterprise.This paper analyzes the present situation of China’s enterprises foreign exchange risk management, we find out that most of the import and export business in the foreign ex-change risk management is basically in the state of inaction, so that is becoming urgent to improve foreign exchange risk management to the import and export business. In the paper Ye Sheng International Energy Ltd. (abbreviated Ye Sheng) is the example by ana-lyzing the current situation of Ye Sheng and to compare domestic and foreign exchange risk management related practices. We find out that there are some common problems u nder the current exchange rate system in our all of import and export business. Their f-o reign exchange risk prevention awareness is weak, lacking the necessary knowledge ands kills to prevent and control foreign exchange risk, they to foreign exchange risk loss; or have a preliminary exchange risk management, but can not recognize their own source of foreign exchange risk policy, the lack of effective guarantee the implementation of risk pr-evention and control and the lack of understanding of the financial products and financial tools.The author reveals Ye Sheng hidden defects in the foreign exchange risk man-agem ent, dialectically evaluate the impact of its foreign exchange risk management of the bu-siness.based on the management achievement, According to the guideline of the theory of hedging, and risk diversification theory, Foreign Currency Financial Statement Translation Method, Accounting Standard for Business Enterprises, the author targeted to raise foreign exchange risk management improvement strategies, determine their improvement goals and principles of a comprehensive upgrade of foreign exchange risk management.Finally, to evaluate the Ye Sheng improvement program and predict its improved results, determine the implementation of security, draw the conclusions and prospect for the future. Through a case study of Ye Sheng International Energy Ltd. improved of foreign exchange risk management improvement studies, providing for the implementation of the program to import and export enterprises about foreign exchange risk management and practical operation of shared learning.