Financial innovations on the currency market as new instruments to risk management

Abstract

The globalisation process has provided us with the possibility of exchange and competition growth, and thus, has brought about the issue of economic (business) creation in the context of the new foreign exchange risk mitigation instruments. e author presents the division and percentage proportion of innovative risk management instruments used in practice in the Polish economic reality, and compares it to foreign markets (the USA and Germany). Moreover, an attempt is made to define what financial innovations are and analyse the available alternatives and instruments provided by the currency market and used to manage a company on the global market. Finally, chances and threats presented by financial innovations are also demonstrated.