FINANCIAL RISK MANAGEMENT – A NEW KIND OF BANKING SERVICES

Abstract

Conducting business activity is inevitably connected with risk – unexpected changes in exchange rate and interest rate have significant influence on companies’ financial results. Thus appropriate hedging should be considered as an essential part of the management process in every firm. The new banking services that have recently emerged may become useful. These are, inter alia, forward contracts, swaps and options. All the above provide a way to actively manage financial risk.