INCREASING THE POSSIBILITIES OF USING DERIVATIVES AS A TOOL FOR RISK MANAGEMENT IN UKRAINE

Abstract

The article examines the actual problem of increasing the possibilities of using derivatives as risk management tool in Ukraine. The importance of hedging as a tool of risk management and the insufficient level of its use in the country are determined. The purpose of the article is to summarize the developed recommendations for increasing the potential of risk management through the using of derivatives and their structuring in the form of a complete algorithm. As a methodical basis, a problematic approach, based on the dissatisfaction of derivatives market participants with its real state was used. Accordingly, all existing problems (factors restraining the development of hedging) are successively combined into one algorithm in such a way that the solution of each of them allows increasing the possibility of using derivatives in risk management. The essence of the existing problems was determined and the directions for their solution were substantiated. In accordance with this, proposals are given for improving the financial education of market participants, creating and distributing special commercial proposals regarding the attractiveness of hedging from financial institutions, conducting special information campaigns, introducing organizational and informational changes to the management systems of business entities, determining objective or sub objective conditions for the expediency of hedging, directions for expanding the range of PFIs and improving the efficiency and liquidity of the derivatives market are proposed. Special emphasis is placed on the systematization of directions and measures aimed at ensuring the ability of the derivatives market to effectively serve hedging operations. In addition, it was emphasized the need to increase and realize the growth potential of the derivatives market as a guarantee of its long-term successful functioning. From a practical point of view, the results of the study significantly increase the level of problems structuring that limit the of derivatives using as a hedging tool, as well as form a defined sequence of actions that allow them to be solved and increase the possibilities of using these financial instruments in risk management.