Derivative financial instruments and financial risk management in Turkey to use application BIST 30

Daha sonra doRisk emerges as a phenomenon that companies encounter throughout their operations. New economic conditions emerging as a result of rapid changes in the world order expose companies to risks of different dimensions. Firms have to perform their risk management correctly in order to reduce or eliminate the risks they are exposed to in the new economic order by predicting. Risk management is to minimize or eliminate the damages that may arise as a result of the correct detection of the risk and sometimes turn it into opportunity. Derivative investment instruments are at the top of the list of instruments used by companies and individual investors to hedge against risks. Derivative products are calculated over the value of another security asset. Markets in which derivative products are traded are called derivatives markets. In the first part of the study, the concept of risk and financial risk is defined. Risk is divided into systematic and unsystematic risk. After defining systematic and unsystematic risks, frequently used hedging methods are explained. In the second part of the study, the conceptual framework of derivative markets and derivative investment instruments has been established and the purposes of using derivative investment instruments are explained. The derivative investment instruments are explained in detail, and then the history and current status of derivative investment instruments are presented. In the third part, the application of the study is included. In the application part, after sharing the purpose of the research, the research method and the research data, the risks exposed to the financial statements of the companies included in the BIST30 Index in 2017 and 2018 are presented. Subsequently, the financial statement views, the profitability indicators of the companies and the derivative investment instrument usage levels in the relevant periods were determined. Keywords: Derivative Investment Instruments, Risk and Types