Commodity markets are perhaps more sensitive to the supply function than financial markets. Political changes, weather patterns and logistical considerations can have a large and enduring impact of price movements. Regulatory changes and new participants in the form of financial institutions investing proprietary monies, have created further cross currents in the commodity waters. Risk management systems – being process controls, reporting frameworks, operating models and governance, all have an increasingly important role to play in the bottom line for participants in this space. The right platforms, support, advice and execution can bring a robust control environment which will enhance resource allocations within a business, and ultimately contribute towards the bottom line.

A four dimensional interpretation of risk budgeting and allocation

Risk management can be a strategic edge for business – by harnessing price volatility it can become an effective tool in an organisation’s success. However, we are the first to recognize that individual customers will have very bespoke requirements.