Hedging and currency risk management in the area of commercial banks

The bachelor thesis is focused on FX risk mitigation and its management in the area of commercial banks. The whole concept deals with a FX risk definition, its quantification through various VaR methods and hedging by using appropriate financial derivatives. Theoretical background is applied into a practical simulation in order to view a decision making process of an imaginary entity influenced by estimated future cash flows resulting from its own portfolio. The final output represents a complex solution of FX risk management with incorporated regulatory authorities requirements