RISK MANAGEMENT
We understand our client’s business and the impact of Commodity rate fluctuations on the bottom line of their business. Effective monitoring of the Commodity exposure alongswith strategic advisory ensures that all the commodity risk are effectively managed. Our tailor made strategic risk management approach is the essence of our portfolio management, as we ensure to make our client’s exposure superior and risk-adjusted.
An Indian company from the Agri product sector faces price volatility and is not able to transfer those extra costs to its client. All commodities related strategies and operations are currently managed by the purchasing department. The top management of the company wants to establish a full financial risk mitigation approach in order to avoid unexpected potential losses which could affect the profitability of the firm.
An Indian company from the Agri product sector faces price volatility and is not able to transfer those extra costs to its client. All commodities related strategies and operations are currently managed by the purchasing department. The top management of the company wants to establish a full financial risk mitigation approach in order to avoid unexpected potential losses which could affect the profitability of the firm.
Our approach is Risk Measurement and Risk Management. By performing an analysis of the company’s risk exposure and processes, we implement our commodity risk management approach. For the above mentioned case, we started with the assessment of the current risk situation. By analyzing purchase, sales and market wide data, we proposed risk management procedures, including: