Currency Risks in Foreign Trade as Challenges for Enterprises Management System in Poland and Ukraine

Abstract

Purpose: The aim of the paper is to study the impact of currency risks on the activities of Ukrainian business entities as well as the necessity of the introduction of certain elements of the currency risk management system. Design/methodology/approach: Scientific methods used in the study are: systematic analysis of economic phenomena and comparison (for assessment of foreign trade in Poland and Ukraine), systematization and generalization (for dividing the exchange risks into categories), sample survey and grouping (for research of companies’ reporting), analysis and synthesis (for identifying areas of cooperation of the Polish and Ukrainian business). Findings: Identified types of currency risks enabled to outline the zone of high currency risk in transactions of foreign trade, which requires the use of risk management techniques. Based on research of the companies’ reports the absence of mechanisms of currency JOurnal Of COrpOrate respOnsibility and leadership the Challenges Of COntempOrary management in the glObal eCOnOmy 56 Valentyna Ksendzuk, Olena Syvak risk management use in practice of Ukrainian business entities has been found as well as advisability of transferring experience of Polish companies has been proved. Research and practical limitations/implications: The practical significance of scientific results is substantiation of approach to currency risk management in companies and providing recommendations for the improvement of Ukrainian enterprises’ activities in terms of application of currency risk management. The cooperation of Polish and Ukrainian business is one of the areas of sharing experience. Originality/value: The estimation of the current status of foreign trade of Ukraine and Poland is given, on the basis of which the influence of exchange rate changes on the activity of enterprises has been substantiated. The experience of Poland in the field of currency risk management is considered to be reasonable for implementation in Ukrainian enterprises in order to develop performance indicators that will be comparable. On the basis of this, the directions of development of Polish and Ukrainian cooperation have been identified in regard to the development of business consortiums and formation of joint Polish-Ukrainian business incubators. Paper type: original research.