Dealing with Commodity Risk Management Function Structure Many commodity companies who are setting up or revamping their risk management function frequently deal with this question in their internal meetings – Should our commodity risk management function structure be centralized, run from head-quarters, or de-centralized, run from individual business units?
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, […]
Risk Management or Trading Profits – the classic paradox There is hardly any other question that we’ve come across more often than this one – sometimes asked upfront and sometimes seen lingering at the top of the mind, but it’s almost always there – If the Risk Division cuts my positions for managing enterprise risks, […]
Why everybody in your organization is a Risk Manager? Several commodity trading / processing organizations think that their Chief Risk Officer (CRO) or Chief Financial Officer (CFO) or CEO has the sole responsibility of managing and reducing risk for the entire organization. In fact, surveys have shown that many Asia-Pacific based organizations think of CEO […]
6 reasons why you should trash your existing Risk Management System Are you a commodity risk manager who has been wondering whether your existing risk management system is really upto the mark and whether you should continue with that system or not? Here are 6 reasons why you should trash your existing Risk Management System: