PRINCIPLES OF MANAGING DERIVATIVES IN NON-FINANCIAL ORGANIZATIONS

Abstract

In addition to the universal principles of management specific principles of derivatives management in nonfinancial organizations have been substantiated and proposed, taking into account the peculiarities of derivatives usage in organizations of the real sector of the economy. In particular, the proposed principles are: differentiation between risk hedging operations and speculative operations, exclusion of conflicts of interest and involvement of senior management in the process of managing derivatives in non-financial organizations. As a result, compliance with the proposed principles will eliminate the occurrence of problematic situations caused by the presence of derivatives in the activities of non-financial organizations.