Commodity Risk Case Study

Commodity Risk Case Study

An international soft commodities trader sought to enhance their risk management framework.

  • The business was exposed to procurement supply shock and market price fluctuations between their fixed buy price and floating sale price.
  • The company had differing perspectives across the board, management and operations on how to define, measure and operationally manage procurement, as well as market price risk.
  • Their current processes to obtain and consolidate data were highly ad-hoc and dependent on one individual soon leaving the company 

Rochford Solution

  • Through workshops with management and operations, Rochford helped the company gain alignment on risk management objectives and current process gaps.
  • Rochford then developed the appropriate tools to facilitate optimal processes, aligned with a low-touch monthly operating cycle.
  • We continue to provide ongoing support and guidance in conjunction with their internal team.

Outcomes

  • The business was able to take both the consultative guidance and developed tools to manage the implementation themselves.
  • There is enhanced clarity, visibility and traceability of risks.
  • The business was able to reshape their risk management policy to align with a process they were confident is right for their business.

Disclaimer

By clicking “Accept” you are confirming you are a wholesale client within the meaning of section 761G of the Corporations Act 2001 or acting for a wholesale client and acknowledge the information contained on this website is intended for wholesale clients only, and must not be distributed directly or indirectly to retail clients as defined under the act.