Avoiding Kotov’s Syndrome in Risk Management Alexander Kotov (1913-1981) was a Soviet Chess Grandmaster and author. In his book, Think Like a Grandmaster, he described a situation now known commonly as the Kotov’s Syndrome. The situation is when a player thinks hard for a very long time but does not find any clear path, and […]
Thank You ! In the past few days, we have released a couple of Publications on Commodity Risk Management. Both of these publications received an overwhelming response from our followers and readers.
Wish you a Happy & Risk-enabled 2014 ! 2013 was a year of significant turbulence and uncertainty. While Stricter Regulations pushed some investment banks to close down their commodity trading divisions (see JP Morgan, Deutsche Bank), excessive Volatility and poor returns saw some commodity hedge funds closing down. The 16 day US shut-down added significant […]
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 […]
Top 5 issues with Commodity Risk Systems This post is part of our unorganized research and survey which we have done across multiple industries and geographies, to find out the top 5 issues with Commodity Risk Systems that are being faced by the trading companies. While many companies are likely to have one of these […]