The Future of Commodity Risk Management The Future of Commodity Risk Management. Here we share what we think how Commodity Risk Management is going to change in the Future for companies that today, either don’t have a well-established risk management process or are struggling with their processes. As we talk to industry experts and commodity […]
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 evolution of Commodity Risk Management ! While maturity of Risk Management processes is good in Banking and Insurance industries which is closely followed by the Energy Trading industry, for Commodity Trading industry it is still in a relatively nascent stage. This is primarily due to delayed integration of commodity markets with the financial markets. […]
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, […]