Whitepaper – Historical vs Implied Volatility We’ve just released our latest Whitepaper – Historical vs Implied Volatility: Which one to use for Computing VaR? The Whitepaper tackles one of the oft-pondered questions in the Risk Manager’s circles – should they use Historical Volatility or use Implied Volatility for calculating VaR. There are generally good arguments […]

Commodity Risk Management beyond VaR First, the bad news – Value at Risk (VaR) of a position / portfolio just gives the maximum loss you can have, with a certain confidence. But it doesn’t tell you what your position / portfolio could lose beyond that confidence. If you are the one managing risks in your […]

The Humble PI of Risk Management A lot of approaches and frameworks are discussed in companies that are relatively new to implementing Risk Management process – the types of control processes, committee structure, risk reports, estimation methods, quantification models, systems, people, etc. In fact, these discussions sometimes go so intense and deep that it all […]

The Huge Cost of Poor Risk Management Many commodity trading / processing companies inadvertently end up relegating their Risk Management Function as just an obligatory process, unable to figure out how to measure its effectiveness on their bottom-line or margins. Many others invest in risk management by either developing their own in-house systems and processes, […]