企业风险管理生命周期理论-西南航空公司客机的燃油套期保值案例外文翻译.doc

本科毕业论文（设计） 外 文 翻 译 原文： A Life cycle View of Enterprise Risk Management The Case of Southwest Airlines Jet Fuel Hedging Iqbal M. Khan The objective of this paper is to illustrate the life cycle of enterprise risk management using the case of jet fuel price risk within Southwest Airlines, Inc. (abbreviated SWA). It is conjectured here that managing market price risk follows a distinct life cycle as a firm moves from creation through maturity. Obviously, the experiences of different firms vary dramatically, but distinct periods can often be identified. We use the history of SWA to suggest the main life cycle periods. We leave to further research the task of identifying and refining these periods for a large sample of firms. For another perspective on SWA, see Carter, Rogers, Simkins and Treanor(2009).The implications of the life cycle perspective are very important. Southwest Airlines We now review the history of jet fuel hedging at Southwest Airlines. This history is divided into four seasons: the formative period, the exploration period, the enthusiastic period,and the seasoned period. A. Formative period (1971-1998) The first mention of jet fuel derivatives positions at SWA was in the 1994 10-K. The motive for entering these derivatives positions appeared to be to help protect against increases in jet fuel prices. In 1994, SWA reported entering fixed-priced swaps, caps, and collars on jet fuel.SWA reported the quantity as not more than 11 percent of then-current usage, with 5 percent based on fixed price swaps. In 1995, although the quantity of hedging dropped to not more than 2 percent of then-current usage, SWA reported using heating oil contracts as well as jet fuel contracts. The impact on fuel expenses appear insignificant and the outstanding positions immaterial. In 1996, the hedging contract reported was call options and the underlying instrument reported was crude oil. The motive for the option transactions remained protecting against jet fuel price in