Risk Management
Physical product & country risks:
- In-depth product knowledge.
- Continuous monitoring of global supply and demand.
- 3rd party control of all storage facilities – bank approved CMA locations.
- Comprehensive insurance policy from global leading underwriters.
Counter party risk management:
- Approval of all trading limits by counterparty.
- Strong MIS for reporting of counter party risk status.
Risk management is an integrated part of business planning operational execution of the company’s strategy and to support the business in achieving financial targets.
Price risk management:
- Defined business limits
- Defined open position limits
- Reporting of marked to market.
- Defined country limits by products.
- Defined global product positions
- Balanced pie of downstream distribution with midstream and upstream business
Legal risk management of executed business terms:
- Defined contract terms for all aspects approved by relevant underwriters and lawyers.
IT & Systems security risks
- In-house IT team for systems security
- In-house Business Intelligence team developing online platform for risk management and control.
Risk Management FAQs
We use defined open position limits and real-time marked-to-market reporting to manage exposure. Additionally, our balanced distribution strategy across the value chain helps mitigate sudden market fluctuations.
All our storage facilities are under 3rd party control at bank-approved CMA (Collateral Management Agreement) locations, ensuring that physical assets are secure and independently verified.
Every counterparty is subject to a formal approval process with defined trading limits. Our strong Management Information System (MIS) provides ongoing reporting to monitor the risk status of all trading partners.
