Market Risk Management in the Telecommunication Industry

The given work is devoted to the analysis and an estimation of an exchange rate risk of the company of telecommunication branch, and also to development of possible measures of elimination of consequences caused by risk factors. The relevance of the topic is due to the growing interest of companies in effective risk management, in which they not only can prevent large-scale financial losses, but also increase the company's capitalization. Despite the fact that the study of risk management is gaining momentum, there is still no unified approach to identifying, analyzing and quantifying the impact of risks on the results and financial status of companies, including non-financial companies. The purpose of this study is to develop a possible algorithm for managing the market (exchange rate) risk of the company. In study the analysis and assessment of the exchange rate risk of a telecommunications company was carried out using the methodology of CorporateMetrics, a measure of CFaR risk (Cash-flow-at-risk) calculated using the Monte Carlo simulation method in the CrystalBall program. Also, as part of development of the risk management system, possible measures for risk leveling were proposed and the effectiveness of their use was estimated.