Approach

How to manage your financial risk linked to commodity prices ?

Most companies are affected by potential financial losses due to the cost increase linked to the volatility of commodity prices. In addition, it can also harm production and, finally, sales if commodities are not available in required quantities.

The lack of proper commodity risk management can have serious impacts on the company’s performance. Therefore, all industrial companies and their clients should assess and manage this risk dynamically to maintain their competitiveness and protect their financial fundamentals by understanding market trends better and managing the internal risk exposure.

Risk response

The following article provides initial ideas for developing and implementing effective price risk management strategies on commodities.

 

1. LACK OF PRICE CONTROL ON THE COST OF RAW MATERIALS  Read more

2. FORECASTING MARKET PRICES  Read more

3. MONITORING PRICE RISK EXPOSURE Read more

4. IMPLEMENTING RISK MITIGATION STRATEGIES Read more

5. ABOUT THE AUTHOR Read more

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