We aim to embed our skills in your business, building commodity risk management programs from bottom up or upgrading your existing program.

Commercial Practice

A large global aluminum fabricator suspects there is financial slippage showing up in its hedging as a result of its commercial practices. Variances could be significant and the executive committee decides they need outside help from experts who understand both commercial and hedging practices for commodities. They ask us to:

  • assist them to identify practices that underlie the inefficiency
  • improve the understanding of sources of risk at the commercial level
  • reinforce the processes and interaction that lie between the commercial and hedge teams

We meet with their teams and identify the commercial causes of risk. Through workshops we educate the sales force about the risk implications of contract clauses and equip them with guidance notes for future reference. We also help increase commercial department co-ordination with the risk management team and are able to eliminate the slippage as commercial agreements are renewed or replaced.