Indonesian Journal of Contemporary Multidisciplinary Research
Vol. 4 No. 1 (2025): January 2025

Foreign Exchange Risk Management Strategies Through Financial Engineering: An Analysis of Forex Exposure, Transaction Exposure, Economic Exposure, and Translation Exposure

Syahwildan, Muhammad (Unknown)
Marlina, Ellin (Unknown)
Zendrato, Erni Putri Setia (Unknown)
Ashari, Widya Jeihan (Unknown)
Putri, Tania Melani (Unknown)
Wardani, Alfina Ayu (Unknown)

Article Info

Publish Date
13 Feb 2025

Abstract

This study aims to develop foreign exchange risk management strategies through financial engineering, focusing on Forex Exposure, Transaction Exposure, Economic Exposure, and Translation Exposure. Using a quantitative approach and historical data analysis, it examines the impact of exchange rate fluctuations on corporate financial performance. A case study on an international trading company identifies risk mitigation strategies, such as the use of financial derivatives. The findings indicate that effective risk management strategies can reduce profit volatility by up to 15%. This research presents a comprehensive model for foreign exchange risk management, contributing to financial literature and business practices.

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Journal Info
Indonesian Journal of Contemporary Multidisciplinary Research
Website

Abbrev

modern

Publisher

PT FORMOSA CENDEKIA GLOBAL

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Industrial & Manufacturing Engineering Social Sciences

Description

Indonesian Journal of Contemporary Multidisciplinary Research (MODERN) is an open-access, double-blind peer-reviewed journal. MODERN is intended to be a multidisciplinary journal for all fields with contemporary methods and techniques in all levels of education, social science, business, and ...