DEVELOPMENT OF INTEREST RATE AND FOREIGN EXCHANGE RATE RISK HEDGING CONCEPT IN NON-FINANCIAL COMPANIES

Due to increase of exchange rates and interest rates fluctuations, non-financial companies need to actively manage foreign exchange and interest rate risks, including its hedging. In order to increase effectiveness of hedging activities it is vital to develop hedging concept which would include key goals of hedging, approaches to risks identification and valuation, key methods of hedging position valuation and key parameters determination, hedging instruments and methods of hedging strategy evaluation. Recommendations presented in this article could allow non-financial companies to build effective hedging system and could be used as a basis for further academic research.

risk management, hedging, derivative, risk, foreign exchange risk; interest rate risk, non-financial company, hedging strategy, hedging policy, hedging concept.

Dmitrieva M. A. Development of interest rate and foreign exchange rate risk hedging concept in non-financial companies // Business. Education. Law. Bulletin of Volgograd Business Institute. 2016. № 2 (35). P. 132–137.