Operational Hedging: A Review with Discussion

• Main Authors: BOYABATLI, Onur, TOKTAY, L. Beril
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2004
• Subjects: Operational Hedging; Risk Management; Operational Flexibility; Business; Operations and Supply Chain Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3758; https://ink.library.smu.edu.sg/context/lkcsb_research/article/4757/viewcontent/pompaper.pdf
• Institution: Singapore Management University

Motivated by the increasing prevalence of operational hedging in corporate-level risk management programs, this paper provides an extensive overview and synthesis of the existing literature on operational hedging. In particular, we focus on the treatment of operational hedging in the operations management literature. We then explore how the concept of operational hedging is studied in the fields of finance, strategy and international business. Finally, we discuss and critique the approaches adopted in the operations management literature in the context of the broader literature on the topic.