The Hedging Challenge Solved Using MCDM Tool- AHP

  • S. Iswarya, S. Preetha


There has been dilemma among decision makers while encountering their decision to hedge their exposure. Thestudy aims finding the influencers ofhedging decision. Among these influencers which contribute more for the effective decision is analysed using Analytic Hierarchy Process (AHP) - multi-criteria decision making tool (MCDM). Snowball Sampling was used for the analyses. The respondents were financial decision makers of the firm. The analysis shows that Exposure coverage (Components of exposure to cover) as the most important influencer followed by policy framework with regards to hedging decision. It is recommended that the decision makers concentrate on exposure coverage and policy framework in their decision on hedging.