Risk Hedging Techniques and Strategic Thinking in a Multinational Company Operating in China
Journal Title: International Journal of Social Science And Human Research - Year 2025, Vol 8, Issue 03
Abstract
The research focused on a multinational firm and investigated the ways in which risk-hedging techniques are incorporated into the processes of strategic thinking in order to improve operational resilience, financial stability, and long-term competitiveness. It assessed the level to which employees believed that various risk-reducing strategies, such as technical hedging, financial derivatives, global currency hedging, sector-specific hedging, and sophisticated risk models, were compatible with the characteristics of adaptability, ecosystem thinking, experiential learning, and sustainability. The findings point out that although generally perceived to be effective, risk-hedging techniques need to be improved with respect to strategic thinking and adaptability and integration. Basically, correlation analysis indicated that the workflow of complex risk models is positively correlated to the strategic concept of agility, whereas that of structured financial risk mitigation strategies remains flexible. On the basis of above considerations, risk management frameworks should align with strategic initiatives, involve more integration across job functions, and build training programs that increase the ability of employees to adapt and implement proactive decision-making. Multinational corporations must integrate financial, operational, and technological risk hedging with strategic foresight for a more resilient and sustainable approach to business growth. The paper, therefore, concludes with recommendations on fortifying risk mitigation, promoting cross-functional collaboration, and ensuring that strategic adaptability remains an integrated consideration within corporate decision making.
Authors and Affiliations
Zhang Wenfa, Lorenzo C. Lorenzo
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