In this part of our Knowledge Series, we present one of the most critical, but also the least understood concept in Commodity Risk Management – Volatility. In this article, we tell you how to calculate volatility, the common pitfalls to avoid, and the various methods to calculate it.
Since Risk Management is critical for all energy / commodity companies today, many companies are putting in efforts to bring it into their strategic fold. While some companies have evolved their own practices for implementing risk management process, it is high time you and your risk team took charge to structure your entire risk process in way that can deliver clear benefits to your business.
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