Scientific Discoveries

Author: Akmatova Ainura Abyshaevna
Senior Lecturer Kyrgyz State University named after I. Arabaev Bishkek, Kyrgyzstan This email address is being protected from spambots. You need JavaScript enabled to view it.

FINANCIAL RISKS AND MECHANISMS FOR THEIR MINIMIZATION IN EXPORT-ORIENTED GARMENT ENTERPRISES OF KYRGYZSTAN

Key words: financial risks, export-oriented enterprises, garment industry, currency risks, hedging, credit risks, liquidity, risk management, financial management, export operations, working capital, diversification, insurance, letter of credit.

Annotation. This article systematically examines the financial risks of export- oriented garment enterprises in Kyrgyzstan and the main mechanisms for minimizing them. The study proposes a classification of currency, credit, liquidity, operational, and macroeconomic risks, and analyzes their impact on the financial stability and profitability of enterprises. Furthermore, the article highlights the garment industry's export potential, enterprise structure, and current economic situation, based on statistical and analytical data.
The main part of the article proposes methods for assessing financial risks and practical mechanisms for minimizing them. Hedging instruments and multicurrency accounts are considered for managing currency risks, while letters of credit, prepayment, export insurance, and factoring are used for credit risks. For liquidity management, working capital optimization, cash flow planning, and the use of credit limits are discussed. Methods for reducing operational risks through equipment maintenance, quality management systems, and personnel training are also considered. The study contains practical recommendations for Kyrgyz garment enterprises: developing a corporate risk management policy, improving financial planning systems, diversifying export markets and product lines, and utilizing government support programs and improving the institutional environment.
According to the study's findings, systematic and comprehensive financial risk management is key to stable growth, profitability, and maintaining a strong position in international markets for export-oriented garment enterprises in Kyrgyzstan. This study contributes to strategic planning.