White Papers Risk Monitoring and Management Trends In Commoditi | Page 7

Risk Monitoring & Management Trends in Commodities
A ComTechAdvisory Whitepaper
SUMMARY
The overall sense provided by this survey is that
while the number of risks (or awareness of the
many varieties of risks) are increasing, much of the
focus is given to market, credit, and regulatory risk
exposures simply because these are believed to be
the most serious in terms of their ability to inflict
commercial damage. These are also the areas in
which most staff appear to be focused when thinking
about commodity risk management. Of course, it can
be argued that this very much depends on the role
of the respondents but the sample included mostly
director-level and senior staff.
Interestingly there does seem to be an increasing
sense that risk management is an enterprise function
- from a strategy and directive sense anyway - with
most risks being primarily managed at an enterprise
level, or at both enterprise and departmental levels.
The exceptions to this are operational risks like
scheduling that is best managed at a departmental
level within guidelines set by the executive.
Finally, the mix of systems and approaches used
to manage all types of risk is perhaps surprising
particularly the use of spreadsheets; suggesting
perhaps that commodity trading companies still
has some way to go in finding and/or adopting
comprehensive tools to help manage risks - even if
those tools may be currently available to them in their
existing E/CTRM solutions.
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