Management of Financial Risk in the Supply Chain in a Multinational Company Cover Image

Управление на финансовия риск във верига снабдяване на транснационалната корпорация
Management of Financial Risk in the Supply Chain in a Multinational Company

Author(s): Nikolay Mazadzhiev
Subject(s): Economy, Supranational / Global Economy, Transport / Logistics
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: Supply chain risk; Currency risk; Corporate governance; Subcontracting; Multinational company
Summary/Abstract: The publication is related to survey of the financial currency risk in supply chain in a multinational company. An international industrial group has been research and it has been found that the group is exposed to changes in currency value on the markets which could impact negatively profit and loss statement, statement of cash flow and financial position. It has been investigated how the issue is managed in practice and has been identified that mainly two methods are being used – Six Sigma approach and COSO framework for risk management. The empirical survey shows that in the real life companies the main approach for control of risk is actually choosing a suitable stable currency in the supply chain contract with the supplier – USD or EUR. Reinforced is the concept that along with the currency risk, the other main risk that is being faced by companies in supply chain is the sole sourcing.

  • Page Range: 167-174
  • Page Count: 8
  • Publication Year: 2017
  • Language: Bulgarian