The goal of foreign exchange risk management is to make full use of effective information and strive to reduce the uncertainty of cash flows caused by exchange rate fluctuations. Control or eliminate the adverse effects that may be caused by exchange rate fluctuations in business activities. In order to achieve this goal, the following principles should be followed in foreign exchange risk management: (1) Comprehensive emphasis on the principle. Government departments, enterprises or individuals that engage in foreign-related economic business are required to attach great importance to foreign exchange risks in their own economic activities. There are different types of foreign exchange risks. Some companies only have transaction risks, while others also have economic risks and translation risks. Different risks have different impacts on enterprises, some are beneficial and some are negative. Therefore, foreign-related enterprises and multinational companies need to keep a clear mind on the foreign exchange risks under items such as foreign exchange transactions, international settlements, accounting conversions, future corporate capital operations, international financing costs and cross-border investment income, and be confident to avoid focusing on one thing and losing another. Cause significant losses, (2) Principle of management diversification. Foreign-related enterprises or multinational companies are required to conduct foreign exchange risk management in a flexible and diversified manner. The business scope, business characteristics, and management styles of enterprises are different. The volatility of foreign currencies involved, the net position of foreign currencies, the correlation between foreign currencies, and the magnitude of foreign exchange risks are also different. Therefore, each enterprise should consider its specific circumstances. Analyze and find the foreign exchange risk tactics and specific management methods that are most suitable for your own risk profile and management needs. over time. External constraints will continue to change, so the enterprise's foreign exchange risk management strategy also needs to be changed accordingly. Enterprises cannot be conservative and adopt only one foreign exchange risk management method for a long time. (3) Principle of revenue maximization. Foreign-related enterprises or multinational companies are required to accurately calculate the costs and benefits of foreign exchange risk management. On the premise of ensuring the achievement of the expected risk management objectives, the minimum cost is spent and the pursuit of maximum benefits is pursued. This is the cornerstone and starting point for enterprises to conduct foreign exchange risk management. It is also the criterion for enterprises to determine specific risk management tactics and select foreign exchange risk management methods. Foreign exchange risk management is essentially a transfer or allocation of risks. For example, using forward foreign exchange transactions, options, swaps, futures and other financial instruments for hedging requires a certain cost to fix future risks. Earnings or expenses that insulate a business's cash flow from exchange rate fluctuations. Generally speaking, the smaller the cost of foreign exchange risk management, the greater the benefits obtained from risk management, and the higher the enthusiasm of enterprises to manage their foreign exchange risks, and vice versa.