Pregled bibliografske jedinice broj: 229089
Euro Introducing Influence on the Risk Management of Croatian Foreign Trade Companies
Euro Introducing Influence on the Risk Management of Croatian Foreign Trade Companies // EACES 8th Conference: “ ; EU enlargement what comes after 2004.?” ;
Beograd: Ekonomski fakultet Univerziteta u Beogradu, 2004. (ostalo, međunarodna recenzija, sažetak, znanstveni)
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Naslov
Euro Introducing Influence on the Risk Management of Croatian Foreign Trade Companies
Autori
Prga, Ivica ; Šverko, Ivan
Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni
Izvornik
EACES 8th Conference: “ ; EU enlargement what comes after 2004.?” ;
/ - Beograd : Ekonomski fakultet Univerziteta u Beogradu, 2004
Skup
EACES 8th Conference: “ ; EU enlargement what comes after 2004.?” ;
Mjesto i datum
Beograd, Jugoslavija, 23.09.2004. - 25.09.2004
Vrsta sudjelovanja
Ostalo
Vrsta recenzije
Međunarodna recenzija
Ključne riječi
market risk; FX risk; Value at Risk; risk management
Sažetak
Much of the Croatian companies are oriented on foreign trade. These entities are exposed to many forms of market risk. The most relevant market risk of these companies is foreign exchange risk. Therefore, identification, quantification, management, and reporting of FX risk is one of the most challenging factors Croatian foreign trade companies face in their everyday business. First relevant question in FX risk management is how to calculate and quantitate this FX risk exposure. Value-at-Risk method could bring the answer on that issue. The second question is what to do to minimize, or even better, to optimize companies` exposure to FX risk. The most appropriate optimizing strategies can be separated as: on-balance-sheet and off-balance sheet ones. On-balance-sheet strategies are hard to implement are they are requiring many strategical decisions on the whole company level. On the other hand side, off-balance-sheet strategies are easier to implement. Squaring FX position by using FX forwards and FX options should become integral part of Croatian foreign trade companies` financial policies. However, the biggest problem in implementing all of the above-mentioned off-balance-sheet strategies is lack or undevelopment of HRK derivates` markets. The Republic of Croatia integration in the EU and, especially, introducing of EUR as a national currency would help solving most of these problems. Then the broad array of off-balance-sheet instruments and structured products would be accessible for companies willing to hedge their risk exposures. Finally, from the Risk management point of view, the Republic of Croatia inclusion in the EU and introducing of EUR is a desirable scenario that would ease the usage of risk-squaring off-balance-sheet strategies.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
