Abstract
Enterprises are faced with various business risks, such as market risk, credit risk, and raw material price fluctuation risk, and futures, as a kind of financial derivative with delayed settlement, can be used to hedge the risks faced by enterprises. This study aims to explore the methods and strategies for enterprises to use futures to hedge business risks, as well as the effect analysis, so as to provide references and suggestions for enterprises to carry out risk management. This study adopts the methods of literature research and case analysis. Firstly, the basic concepts and operation methods of the futures market are introduced, as are the basic principles and methods of enterprise risk management are introduced. Secondly, it discusses the methods and strategies for enterprises to use futures to hedge risks, and makes an empirical analysis of their effects. It is found that the methods and strategies of hedging risks by using futures can effectively reduce the risks faced by enterprises, especially the risk of raw material price fluctuations. However, there are certain costs and technical thresholds for hedging risks by using futures, so enterprises should use them carefully according to their own conditions.
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