Financial Risk Management in Wireless Communication Equipment Manufacturing Firms at Samsung Electronics Co. Ltd
DOI:
https://doi.org/10.64751/ijdim.2026.v5.n3.1309Abstract
This study, titled "Financial Risk Management in Wireless Communication Equipment Manufacturing Firms at Samsung Electronics Co. Ltd," evaluates the core risk drivers, cash conversion metrics, and financial feasibility of integrating enterprise treasury management systems in high-technology manufacturing. Wireless equipment manufacturers face high foreign exchange (FX) volatility, supply chain disruption, and accounts receivable credit risk. A five-year project lifecycle (2021-2025) of a new digital risk management engine is analyzed using capital budgeting metrics: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative results show that foreign exchange volatility constitutes 35% of risk exposure. Active currency hedging stabilizes Return on Capital Employed (ROCE) at 19.8% while reducing the overall cash conversion cycle to 18 days. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, indicating strong project feasibility. The study concludes that deploying quantitative risk engines is highly viable, enabling telecommunication manufacturers to mitigate currency exposure, protect profit margins, and secure working capital. Keywords: Financial Risk Management, Foreign Exchange Hedging, Wireless Manufacturing, Cash Conversion Cycle, ROCE, Capital Budgeting, Financial Feasibility.
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