Analytical approach to the formation of currency risk management strategy of a group of related companies

Abstract

An exchange rate risk related with the threat of economic losses being a result of changes in an exchange rate during the execution of a foreign economic contract is a significant risk for the group of international companies. The rejection of fixed exchange rate at the global level has led to the fact that subjects of foreign economic activity in different countries should pay more and more attention to minimizing the negative impacts of exchange rate differences. For corporate-type enterprises that have many business relationships and transactions with foreign economic counterparties, the area of exchange rate differences management is being updated in the context of minimizing risks of the group's economic activity. The article is devoted to the formation of an analytical approach to currency risk management of a group of international interconnected companies, which are formed during intra group foreign economic transactions. With the proposed approach, group managers can form a currency risk management strategy, minimize losses and gain additional benefits from changes in exchange rates