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INTRODUCTION
After a period that saw commodity prices and volatilities broadly collapse, there is every indi-
cation that commodities are once again an attractive asset class. Prices and volatilities have
been rising again across almost all commodities, and investors have been returning in droves.
This was demonstrated by the S&P GSCI, having reached a low point in 2016, before climbing
relatively steadily ever since. Meanwhile, low interest rates, solid economic growth across the
globe and rising corporate earnings have hoisted equities to record levels early in 2018, before
losing some luster recently. Commodities, the basic building blocks of civilized life, are again in
demand – both from consumers as well as investors.
The rise in commodity prices and volatilities impacts ev-
eryone as this comes at a time when there is increased
regulatory and stakeholder oversight, geopolitical un-
certainty, and fundamental shifts in technology and
industry structure are taking place. All aspects of risk
are important, but operational risks and cross asset
risks/opportunities in particular, have increased in im-
portance. Many companies are also seeking to reduce
costs and engage in digitalization programs while seek-
ing system consolidation and a reduction in total cost of
ownership of solutions.
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